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