Procurement News Notice |
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| PNN | 3128 |
| Work Detail | Despite some unresolved issues, the Vermillion City Council agreed at its Aug. 1 meeting to follow the recommendations of the city’s Utilities Committee and move ahead with a process that will eventually craft a new cable TV franchise agreement between the city and MidContinent Communications. This company is the current cable television franchise holder in the city of Vermillion. In September 1999, the city council adopted Ordinance 1078. This ordinance provided for a 15-year nonexclusive franchise agreement for cable television services. The original franchise agreement was signed with Zylstra Communications Corporation but has been transferred several times since 1999 and is currently held by Midcontinent Communications. While the original franchise term is for 15 years commencing on the effective date of the ordinance, which is Oct. 21, 1999, a section of this ordinance which addresses the term of the franchise agreement provides for “two additional 12-month periods by the manager with the approval of the municipality notifying the company of the same in writing.” The city council learned from City Manager John Prescott that both of those one-year extensions have effectively been used up, and the city and Midcontinent are now consider a new franchise agreement. “It was for a 15-year agreement,” Prescott said, describing the original ordinance, “and we put in two one-year renewals at the request of the council.” At the Sept. 2, 2014 meeting, the city council authorized the notification by Prescott to Midcontinent Communications of the first one-year extension. In September 2015, the city council again authorized the notification of the second one-year renewal extension. A memo to aldermen from Prescott notes that during discussions with Midcontinent Communications regarding the extension of the current franchise, representatives of the cable company noted that they did not like the existing franchise document. Through these discussions, a proposed draft franchise has been developed. A draft of the franchise was presented to the Utilities Committee at their meeting on Wednesday, July 20, and major points were reviewed and discussed. “Staff has been working with the cable company trying to develop a franchise agreement over the last year at different times,” Prescott said. “We did present a draft (of a new ordinance), and the city attorney has reviewed it, to the Utilities Committee on July 20, and the Utilities Committee did make a recommendation to move this item forward. The way statutes are written, they need to give you their recommendation.” The proposed franchise is for 10 years and there are no system improvement payments included. Most of the free services have been removed except for City Hall, the Library, and the Vermillion public schools. Also, the required number of PEG channels are reduced from three to two. Presentations to the city council were included in the new franchise agreement. The cable franchise fee will remain at 5 percent on gross revenue and the requirement to install service to new developments will be changed to new service within 150 feet of existing lines or 10 subscribers within a quarter mile of existing service. “There are a couple outstanding language issues to be worked out, but in essence it would be 10-year franchise agreement,” Prescott said. “It is non-exclusive, just like the current franchise agreement is non-exclusive.” He noted that the language requiring new service within 150 feet of existing lines or 10 subscribers within a quarter mile of existing service came about following a suggestion from the Utilities Committee. Originally, Midcontinent would have had to provide new service if there were 15 subscribers within a quarter mile of existing service. “We talked with Midcontinent and traded e-mails, and they have agreed to go down to 10 subscribers within a quarter mile,” Prescott said. “I would imagine that we would provide a synopsis or maybe get a draft of this (new ordinance) out there for the committee to take a look at before we present it to the city council probably in September. Prescott noted that the decision point of the council is on moving forward, at the recommendation of the Utilities Committee, in adopting new agreement subject to language on the outstanding items being resolved and questions identified by the Utilities Committee being addressed. |
| Country | United States , Northern America |
| Industry | Entertainment |
| Entry Date | 03 Sep 2016 |
| Source | http://www.plaintalk.net/local_news/article_838f8c3c-6bd0-11e6-9336-0b01b99bbd73.html |
