10/02/2001 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 10/Z/2001 and McKay; Dr. Sebring, Assistant Superintendem of Schools; Rick Coplan from Ameritech, Eric Brown from WideOpenWest; Todd Hunt, the city's consuhant. The committee discussed the proposed transfer of the cable television franchise of Ameritech New Media to WideOpenWest. Mr. Hum had several concerns: financial wherewithal, the legal capacity to operate in Ohio, and the technical capabilities. There is only one other franchise open and up and running and that is in Lakewood, Colorado. The company has signed a series of franchises in Texas and are waiting to bill. There are $30 million in operating funds available. They will not turn over a profit until year three in our city. The committee asked the question what would happen if the transfer was not approved, and the answer was that they would just move ahead in other communities and our community would be left out. After reviewing the information previously submitted, the city requested additional information from ANM and WideOpenWest in order to consider the effects of the proposed transfer upon the health, safety and welfare of the residents of the city and to perform its due diligence review of the technical, legal and financial ability of WideOpenWest to perform the obligations of the franchise. This information was supplied. The city, ANM and WideOpenWest have been engaged in discussions and negotiation of issues relevant to the transfer and have essentially reached agreement upon the terms and conditions of the same: • Ameritech New Media and WideOpenWest shall certify in writing to the city that the transfer has been completed within 10 business days of such completion. • WideOpenWest shall execute within 10 days an instrument of acceptance indicating that it assumes and is bound by all obligations of the franchise under the agreement. • ANM or WideOpenWest shall certify in writing within 10 business days of the actual transfer that there is no material change in the information disclosed to the city pursuant to the request to approve the transfer as provided in the FCC Form 394 dated June 6, 2001 and the information and commitments made by WideOpenWest and contained in the Letter dated August 6, 2001 from Craig Martin, general counsel of WideOpenWest, to Mr. Hunt, representing the city in connection with the transfer. A copy of that letter is on file with the Clerk of Council. • By the date of the ac~.ual transfer, a certificate of insurance in the amounts required must be provided. • A letter of credit in the amount of $25,000 must be provided to the city and must be maimained throughout the term of the agreemem. • Wide4penWest shall include cable modem revenue as gross revenues upon which it shall pay a franchise fee to the city. • WideOpenWest has sufficient available capacity in its cable system and is able to negotiate mutually satisfactory access agreements with unaffiliated Internet service providers. • WideOpenWest shall maintain at its expense the two (2) fibers of spare capacity included in its cable system, and it shall permit the use of said institutional network by the city and the schools for non-commercial voice, video and data communications. • Within thirty days of receipt of an invoice from the city, they shall reimburse the city for its actual expenses incurred to a maximum of $5,000. The legislation will be passed this evening under suspension of the rule 4 1