NUMB:
981230
VERS:
SUBSTITUTE 5
REF:
XXBY:
THE CHAIR
TITL:
Substitute resolution authorizing the execution of a renewal to the City's current cable television franchise agreement.
ANLS:
_________________________________________________________________
- Analysis -
This substitute resolution authorizes the execution of a Renewal Cable Television Franchise Agreement ("Renewal Agreement") between the City and Time Warner Cable of Southeastern Wisconsin, LP ("Time Warner"), the successor in interest to the City's franchisee under the prior franchise, i.e., June 1, 1983 through December 31, 1999. Under the renewal franchise, Time Warner will upgrade its current cable system to make available to all subscribers within the City a minimum of 79 analog video channels, deploy new interactive services and equipment, provide high speed Internet access, provide digital audio services and such other video and audio services and equipment which are available to other franchise systems served by the same Time Warner head end and adjacent to the City. Time Warner commits to continue making a franchise fee payment in the amount of 5% of gross revenues and has agreed to provide, at the time of franchise signing, $5.89 million (which includes certain back payments attributable to the 1983 franchise) in funding for public, educational and governmental access needs. The City will also receive from Time Warner an upgrade to the current bi-directional origination site provided under the prior agreement and the construction of up to 17 additional remote origination sites. In addition, Time Warner has committed to fund a $200,000 Disadvantaged Business Enterprise ("DBE") Loan Program and a $545,000 Scholarship Program for Milwaukee students. Time Warner has also committed to use its reasonable efforts to contract with DBE's for 18% of its discretionary spending. The franchise is for a 17 year term commencing on January 1, 2000. Time Warner has also agreed to be bound by the revised provisions of Chapter 99, Milwaukee Code of Ordinances, being considered contemporaneously with this resolution. Those provisions contain, among other things, extensive new consumer protection requirements. The renewal franchise will be transferred from Time Warner Entertainment Company, LP ("TWE"), to Time Warner. TWE, the franchisee under the prior franchise and the parent of Time Warner, has guaranteed the performance of all Time Warner franchise obligations under the renewal franchise. This resolution also authorizes the City Clerk to temporarily, for a period not to exceed 180 days, operate public access programming with funding for that operation coming from the PEG Grant provided by Time Warner under the Renewal Agreement. ___________________________________________________________________
BODY:
Whereas, Time Warner Cable of Southeastern Wisconsin, LP ("Time Warner"), through its predecessor in interest, has asked the City to renew the 1983 nonexclusive franchise (the "prior franchise") to construct, install, maintain and operate a cable television system in the City; and
Whereas, The construction, installation, maintenance and operation of such a cable system involves the occupation of and placement of private commercial facilities in the public rights-of-way within the City; and
Whereas, The City has reviewed Time Warner's predecessor in interest's performance under the prior franchise and the quality of service during the prior franchise term, has identified the future cable related needs and interest of the City and its citizens, has considered the financial, technical and legal qualifications of Time Warner, including the guarantee of performance from Time Warner's predecessor in interest and parent, Time Warner Entertainment Company, LP ("TWE") and has determined whether Time Warner's plans for constructing, operating and maintaining its cable system are adequate, in full and complete public proceedings; and
Whereas, The City has relied on Time Warner's representations and has considered the information that Time Warner has presented to it; and
Whereas, Based upon Time Warner's representations and information, and in response to its predecessor in interest's request for renewal, the Common Council has determined that, subject to the provisions of Chapter 99, Milwaukee Code of Ordinances, and the terms and conditions set forth in the cable television franchise agreement attached to this file, and upon the recommendation of the Director of the Department of Administration, Office of the City Attorney and Office of the City Comptroller, to approve a transfer of the franchise from TWE to Time Warner and to enter into a renewal franchise with Time Warner which will supersede the prior franchise and which is consistent with the public interest; and
Whereas, The City and Time Warner have reached agreement on the terms and conditions for such a new franchise which are set forth in the cable television franchise agreement attached to this file; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the proper City officers are hereby authorized and directed to execute the cable television franchise agreement ("Renewal Franchise") between the City and Time Warner Cable of Southeastern Wisconsin, LP ("Time Warner") attached to this file; and be it
Further Resolved, That the City Treasurer is hereby authorized and directed, upon receipt from Time Warner of the PEG Grant referenced in Section 7.d.i. of the Renewal Franchise, to invest that portion of the PEG Grant (hereinafter referred to as the "PEG Grant Investment") determined by the City Clerk as not needed to fund the temporary operation of public access programming and any initial capital grant to the Access Manager selected by the Common Council. The PEG Grant Investment shall, to the extent practicable, meet a funding schedule established by the City Clerk. All amounts, including interest, received on such PEG Grant Investments shall be used for purposes authorized by further action of the Common Council, which action shall be consistent with Section 7 of the Renewal Franchise Agreement; and all such PEG Grant amounts, including interest, shall be recorded in appropriate accounts, as determined by the City Comptroller, in order to achieve the purposes of this resolution; and be it
Further Resolved, That the City Clerk is hereby authorized and directed to use funds from the PEG Grant or PEG Grant Investments to temporarily operate public access programming through a contract with the Milwaukee Access Telecommunication Authority ("MATA") or another entity, or City staff, if MATA is unwilling to enter into a contract. The City Clerk's temporary operation of public access programming shall not exceed 180 days or the time of City's entry into a long term access management contract, whichever occurs first; and be it
Further Resolved, That any back conduit license fee payments, for a period measured through December 31, 1999, received by the City under Common Council File No. 981231 or File No. 981232 shall be treated as a portion of the PEG Grant by the City Clerk, City Treasurer and City Comptroller; and be it
Further Resolved, That the Common Council hereby establishes a public access funding committee with members appointed by the chairperson of the Utilities and Licenses Committee. The public access funding committee shall study methods of raising funds for public access which are in addition to funds provided under the Renewal Franchise. The public access funding committee shall report the results of its fundraising efforts to the Utilities and Licenses Committee within 120 days of the effective date of this resolution.
DFTR:
City Attorney's Office
PBMcD:dms
12/16/99 ($1.5 mm)
26997