Loading...
HomeMy WebLinkAbout1996-04-08 96-181 RESOLVECOUNCIL ACTION Item No. 96-181 Nate April B. 1996 Item/Subject: Resolution Approving An Extension of the Team of the Franchise of A -R Cable Services - MR, Inc. to Provide Cable Television Service Responsible Department: Legal As the Council is aware, the City of Bangor is one of a number of area coxmmnities currently negotiating with A -R Cable Services, MR, Inc. ("Cablevision") for renewal of Cablevision's current cable television franchise agreements. Bangor's current franchise agreement, originally signed May 1, 1981 with Coastal Cable Corp., is due to expire on April 26, 1996. Other area c unities' franchise agreementswillalso expire this suras ,aunless extended or renewed. .See list attached. The attached Council Order would extend Cablevision's current franchise agreement with the City of Bangor under the same terms (continued on attached sheet) Department Mad VU Manager's Comments:a, ^O V IO �n��AWattCwaR Nom- — 9- City Manager Associated Information: .Resolve Finance Director olct Cityy solicitor Introduced For New Business Passage First Reading Referral1 �6 7ow,o.�U16j NBb Page _ of ' 9smwn 96-191 and conditions for an additional eight months, through December 31, 1996, to allow for continued franchise renewal negotiations. A goal of the local consortium is to establish December 31, 1996 as a common expiration date for this purpose. One of the issues under discussion in our franchise renewal negotiations is the amount to be charged as a franchise fee. Under federal law, local franchising authorities can charge cable companies up to 5% of gross annual revenues in the community concerned as a fee for the privilege of locating their lines in the public streets. Under our current franchise agreement, Bangor's franchise fee is set at 3% of Cablevision Is Bangor revenues. This charge currently amounts to some $65,000 - $75,000/year. As acondition of Cablevision's franchise extension, Bangor has the option to increase Cablevision's franchise fee during the extension period to St. Brewer City Manager Harold Parks, a chairperson of the local cable consortium, has suggested that Bangor remain at 3%, along with Old Town, Brewer, Lincoln, Hampden and Southwest Harbor, and that other area communities not currently at 3% come up to that level, to make all agreements uniform in this respect. Should Bangor elect to increase the current franchise fee and should Cablevision not agree to the increase, Cablevision's Bangor franchise would terminate on April 26,,c1996. Because there are several issues to be considered in approving an extension of the current franchise agreement, x have asked that this item. be referred to the Municipal Operations Committee for review. Assigned to Councilor Leen April 8, 1996 96-181 CITY OF BANGOR Resolution A iovirt....._An Extension of the Term (iITt6) egO1bE1_......._......_....._....p..{......... 9..._..................._..._..._.._........_..._........._ of the Franchise of A -R Cable Services ME, Inc. to .......... ............ .kLQM1.dR..C.dU.12...Tjalay. S.aA..BWiYUW........................_................................. By Om aw CJaaen of dw 0"y of Remove. RESOLVED. WHEREAS, A -R Cable Services - ME, Inc. (-A-R Cable") is the holder of a Cable Television Franchise Agreement originally granted by the City of Bangor to Coastal Cable Corp. on May 1, 1981; and WHEREAS, A-R Cable's franchise will expire on April 26, 1996; and WHEREAS, A -R Cable has requested a renewal of its franchise; and WHEREAS,_ the City of Bangor and A -R Cable are currently negotiating the terns of a renewal of the franchise; and wBEAEAB, Bangor is a member of a consortium of communities that are negotiating with A -R Cable; and WHEREAS, the franchisee granted by a majority of the communities an the consortium expire in mid-1996; and WHEREAS,' the members of the consortium desire to establish a common franchise expiration date to facilitate negotiations with A -R Cable; and WHEREAS, Bangor desires to extend the term of its franchise with A -R Cable to December 31, 1996, MOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Bangor: 1. The cable television franchise currently held by A -R Cable under the original franchise agreement dated May 1, 1981 is hereby extended to December. 31, 1996. 2. All terms and conditions of the existing franchise shall remain in effect. 96-181 3. Thisextension is without waiver of any rights the Town or A -R Cable may have under the existing. franchise, the Cable Communications Policy Act of 1984, as amended by the Cable Television Protection and Competition Act of 1992 and the Telecommuniciations Act of 1996, or any other law. 4. This extension shall be deemed ineffective unless accepted in writing by A -R Cable Services - MR, Inc. within ten days after passage of this Resolve. IN CITY COUNCIL April 8, 1996 First Reading - Referred to Ccamen nity d Econ. Uevel 9Omittee CL J IN CITY COUNCIL April 22, 1996 Passed Y CLERK 96-181 RESOLVE Resolution Approving An Extension of the Term of the Franchise of A -R Cable Services - NE. Inc. to Provide Cable Television Service. I CABLE CONSORTIUM file: extpro.Eoc �K -reA year 09raz~4 WA a i/fIoe year ✓enewrtl �ePm_ jhe renewal 4erm will ey1re an )(pit X, S Extensw MunicioaliN Emiration Date Franchise Payment Proviam EllswoM June 30, 1994 $1.00 per subscrtbertyr Yes BuclofPort Dec 13, 1994 $1.00 per subsoribertyr Yes (Extended to June 13, 1995) Onington June 23, 1995 No Payment No Bar Harbor June 2, 1995 $1.00 Per subscriberlyr Yes (June 30, 1995) Dexter Dec. 3,1995 No Payment No Bangor Apr26,1996 3% Yes Old Tom May 6, 1996 3% No Brewer July 1, 1996 3% No Lincoln July 1, 19% 3% No Hampden July 19, low 3% No Orono July 24, 19% $1.00 per subscriberlyr Yes Milford Aug. 11, 19% No Payment No Veale Dec. 1, 1996 $3,000tyr No SW Harbor Feb. 1, 199] 3% Yes file: extpro.Eoc �K -reA year 09raz~4 WA a i/fIoe year ✓enewrtl �ePm_ jhe renewal 4erm will ey1re an )(pit X, S