10.A.
City Council Meeting - FINAL (2)
- Meeting Date:
- 03/21/2017
- From:
- Anja Wendel, Senior Assistant City Attorney AW
TITLE:
Consideration and Adoption of Resolution No. 2017-10: A resolution of the Flagstaff City Council authorizing an Interim Renewal of Cable License Agreement (Second) with NPG Cable, LLC, doing business as Suddenlink (license to use City rights-of-way for cable services/facilities)
RECOMMENDED ACTION:
1) Read Resolution No. 2017-10 by title only
2) City Clerk reads Resolution No. 2017-10 by title only (if approved above)
3) Adopt Resolution No. 2017-10
2) City Clerk reads Resolution No. 2017-10 by title only (if approved above)
3) Adopt Resolution No. 2017-10
Executive Summary:
The City has a Cable License Agreement with NPG Cable, LLC, doing business as Suddenlink. NPG has been providing cable services to the Flagstaff community since 1995. The current license was issued in 2007 and was to expire December 31, 2016. The City Council approved interim renewal through April 30, 2017. NPG is seeking to renew the license. The license allows NPG to construct, install, operate and maintain a cable services system in City rights-of-way. Also by virtue of federal and/or state laws, Suddenlink may use the same system to provide internet and telecommunications services without an additional license. NPG pays the City an annual license fee of 5% of gross revenues from cable services as consideration for use of City rights-of-way.
City staff recommends that City approve an interim renewal license with NPG for up to four (4) months (through August 31), to allow additional time for negotiation of a long term renewal license.
City staff recommends that City approve an interim renewal license with NPG for up to four (4) months (through August 31), to allow additional time for negotiation of a long term renewal license.
Financial Impact:
NPG pays the City an annual license fee of 5% of gross revenues from cable services in the Flagstaff community. For FY16, the fee was $497,573.
Policy Impact:
None.
Connection to Council Goal, Regional Plan and/or TeamFlagstaff Strategic Plan:
Council Goals 2017-2019:
TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE Deliver quality community assets ....
Team Flagstaff Strategic Plan 2017:
Strategic Priority #3: Foster a resilient and economically prosperous city
2. Deliver outstanding service through a healthy environment, resources and infrastructure.
Regional Plan:
Policy ED.3.9 Develop infrastructure so that the community has access to high-speed internet and telecommunications.
TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE Deliver quality community assets ....
Team Flagstaff Strategic Plan 2017:
Strategic Priority #3: Foster a resilient and economically prosperous city
2. Deliver outstanding service through a healthy environment, resources and infrastructure.
Regional Plan:
Policy ED.3.9 Develop infrastructure so that the community has access to high-speed internet and telecommunications.
Has There Been Previous Council Decision on This:
1995: City approved cable services license agreement.
2007: City approved renewal license.
2012, 2015: City approved transfer of control of license.
December 20, 2016: City approved interim renewal license (through April 30, 2017).
2007: City approved renewal license.
2012, 2015: City approved transfer of control of license.
December 20, 2016: City approved interim renewal license (through April 30, 2017).
Options and Alternatives:
1. Approve Interim Renewal of Cable License Agreement (Second)
Pros: Operational continuity, allow time to consider long term renewal terms.
2. Do not approve Interim Renewal of Cable License Agreement (Second)
Cons: Operational uncertainty, loss of fees for use of rights-of-way, legal risk
3. Approve renewal with different terms and conditions (e.g. duration, lesser fee).
Pros: Operational continuity, allow time to consider long term renewal terms.
2. Do not approve Interim Renewal of Cable License Agreement (Second)
Cons: Operational uncertainty, loss of fees for use of rights-of-way, legal risk
3. Approve renewal with different terms and conditions (e.g. duration, lesser fee).
Key Considerations:
City staff will be asking City Council for direction as to possible changes to the renewal license at a Work Session on March 28, 2017.
The Interim Renewal of Cable License Agreement (Second) simply maintains the status quo until the parties complete negotiation of a longer term renewal license.
Community Involvement:
Suddenlink has established a cable services/telecommunications network throughout the City and plays an important role in the community providing entertainment and communications.
Expanded Options and Alternatives:
The Flagstaff community is invited to attend and comment at:
A work session on March 28, 2017 regarding the cable license agreement;
A public hearing on April 4, 2017 regarding proposed renewal of the cable license agreement, and first reading of an ordinance to amend the City cable ordinance (Chapter 3-09, Cable) of the City Code;
A public meeting on April 18, 2017 for a second reading of such ordinance, and consideration of renewal of such license.
A work session on March 28, 2017 regarding the cable license agreement;
A public hearing on April 4, 2017 regarding proposed renewal of the cable license agreement, and first reading of an ordinance to amend the City cable ordinance (Chapter 3-09, Cable) of the City Code;
A public meeting on April 18, 2017 for a second reading of such ordinance, and consideration of renewal of such license.