2021 CITY COUNCIL MEETING STAFF REPORT

To: City of Red Wing City Council and Mayor WilsonFrom: Laura Blair, Administrative Services Director

Meeting Date: Monday, May 10, 2021Agenda Item Number: 9. E.

Title — Resolution to extend Hiawatha Broadband Communications ( HBC) cable franchise

through December 31, 2021

Purpose — HBC franchise expires in May 2021. The resolution extends the current franchise

agreement through December 2021 as the city continues negotiations. The City also holds asecond cable franchise with Spectrum ( Charter Communications). Spectrum' s franchise

expires in September 2021 and negotiations have not yet started.

Recommended Action — Approve a resolution to extend Hiawatha Broadband

Communications ( HBC) cable franchise through December 31, 2021

Attachments — Resolution 7646

Background —Brian Grogan, franchise attorney with Moss & Barnett outlined the next steps

during a workshop with the City Council and a follow- up meeting with the franchise committee. Council members Brown, Beise serve with city staff on the franchise committee.

The next steps include:

Prepare a draft franchise for HBC

o Cable franchise committee — Brown, Beise, Kuhlmann, Blair reviewed with

the Mr. Grogan

City work to assess and revise PEG ( public education, government) provisionso Blair preparing a 10 year Capital Expenditure Plan

Extend HBC franchise that expires in April

o For City Council approval on Monday, May 10, 2021Negotiations with HBC will continue through the summer of 2021

Recommended Action — Approve Resolution No. 7646 Approving Hiawatha BroadbandCommunications, Inc. (HBC) a Franchise Extension through December 31, 2021

RESOLUTION NO. 7646

GRANTING HIAWATHA BROADBAND COMMUNICATIONS, INC.

A FRANCHISE EXTENSION THROUGH DECEMBER 31, 2021

WHEREAS, on or about April 25, 2011, the City of Red Wing, Minnesota (" City")

granted Cable Television Franchise Ordinance No. 6, Fourth Series (" Franchise") to

Hiawatha Broadband Communications, Inc.; (" HBC") and

WHEREAS, the initial term of the Franchise is set to expire on or about May 4,

2021; and

WHEREAS, both the City and HBC desire to extend the term of the Franchise to

facilitate renewal negotiations under state and federal law.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Red Wing,

Minnesota as follows:

1. The Franchise is hereby amended by extending the term of the Franchise

from May 5, 2021 through the date on which HBC' s Franchise is either renewed or until

and including December 31, 2021, whichever shall first occur.

2. Except as specifically modified hereby, the Franchise shall remain in full

force and effect.

3. The City and HBC hereby agree that neither waives any rights either may

have under the Franchise or applicable law.

SIGNATURE PAGES TO FOLLOW]

16884346v1

Adopted this day of , 2021.

ATTEST:

32

City Clerk

Council President

Presented to the Mayor at on this day of , 2021.

Approved this day of , 2021.

Mayor

26884346v1

ACCEPTANCE

Hiawatha Broadband Communications, Inc. hereby acknowledges the City of Red

Wing Resolution No. and hereby accepts the terms, provisions and

recitals of the Resolution and agrees to be bound by the Franchise to the extent

consistent with applicable laws.

DATED: 2021 HIAWATHA BROADBAND

COMMUNICATIONS, INC.

Its:

36884346v1