ITEM 7.1 Franchise Agreement with Charter CableCITY OF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR: MEETING DATE:
Legal
City Attorney May 22, 2017
PRESENTER(s)
REVIEWED BY: ITEM #:
City Attorney
City Administrator/Finance Director 7.1
Flaherty
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that Council retain the services of Robert Vose of Kennedy & Graven to advise the City
and City staff regarding renewal of Charter Cable Franchise which expires in November of this year.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/J USTI FICATION:
The City entered into a cable franchise Agreement with Charter in 2002. At that time both Charter and a
company named WH Link applied for franchises. WH Link asserted that they had federal authority which
restricted the Cities right to require certain franchise provisions that Charter was subject to. The City
granted franchises to both Charter and WH Link. Charter accepted the franchise while WH Link appealed
the legal issues of the franchise to the Minnesota Court of Appeals, where the City decision was upheld.
During the course of the events described above, the City retained Bob Vose of Kennedy & Graven to
represent the City as the proceedings required expertise in the area of City Franchise Law. He also
negotiated the original franchise, now expiring. The City sent correspondence to Charter quite a while ago
regarding negotiations for a franchise renewal but have only recently heard back from them. Mr. Vose has
indicated to me that many municipalities in the metro area are in a similar situation, and it appears that
Charter is delayed in these negotiations due to overall corporate issues.
It would be valuable to have authorization to contact Mr. Vose for advice regarding these procedures,
especially in light of the short term for franchise renewal that the City now faces. Depending upon the
issues raised by Charter in the renewal process we may have to make extensive use of Mr. Vose or just a
few hours of his time.
SUPPORTING DOCUMENTS ATTACHED:
• Letter from Kennedy & Graven.
POSSIBLE MOTION
Motion to approve City staff to work with Bob Vose of Kennedy & Graven on issues raised by Charter Cable
Franchise renewal upon the terms and conditions of that letter from Kennedy & Graven dated May 2, 2017.
470 U.S. Bank Plaza
_ Offices in 200 South Sixth Street
Minneapolis Minneapolis, MN 55402
r (612) 337-9300 telephone
Saint Paul (612) 337-9310 fax
t
St. Cloud www.kennedy-graven,com
c H A R T E R E D Affirmative Action, Equal opportunity Employer
KOBEWIVJ. V. VUSE
Attorney at Law
Direct Dial (612) 337-9275
Email: rvose@kennedy-graven.com
May 2, 2017
Mr. Andrew MacArthur
MACARTHUR LAW OFFICE, LLC Via E -Mail and U.S. Mail
3601 Thurston Avenue N
Suite 103
Anoka, MN 55303
RE. City of Otsego; Cable Franchise Renewal
CCVH Operating LLC, dba Charter Communications ("Charter')
Dear Andy:
I understand Charter's cable franchise with the City of Otsego expires in November of this year.
You have asked for a proposal to assist with renewal of that franchise.
PROPOSAL
Experience
I would be responsible for this project. I have assisted with many cable franchise renewals in
Minnesota, as well as competitive franchising requests. I have previously assisted Otsego with both.
I have negotiated with all cable operators in Minnesota including Charter.
A short list of only those clients I am currently assisting with franchise renewals is attached. My
resume is also enclosed. I can provide a longer list of communities I have previously represented in
franchise renewals or competitive franchising upon request.
Malpractice insurance coverage.
We carry professional liability insurance with Westport Insurance Companies in the amount of
$5,000,000 per clairn/aggregate. Industry standard exclusions only.
Conflict of Interest.
We are aware of no potential conflicts of interest.
Fees
I charge $175 per hour for cable -related matters. The minimum billing increment for services
including phone calls and correspondence is six minutes. We would bill out-of-pocket costs for
498866v2 RJV VS105-1
Mr. Andrew MacArthur
May 2, 2017
Page 2
standard things such as postage, long distance telephone calls, photocopying, filing fees and
witness fees, and similar items. Our monthly billing statements provide detail for all fees and
costs. Billings for services will be on a monthly basis. Billing statements are sufficient detailed to
adequately identify the tasks performed, the attorney or staff performing them, and the time spent
on each.
1 anticipate that my fees to assist you with finalizing a franchise renewal with Charter would not
exceed $10,000. The actual cost may be much less depending on the list of needs or interests the
City has for a renewal.
Thank you for allowing Kennedy & Graven to offer its services to you and the City. Please feel free
to contact me if you have any questions or need any additional information.
Yours truly,
—
Robert J.V. Vose
RJV : jms
Enclosures
498866v2 RJV VS 105.1
Current Cable Renewals
Projects include;
- Apple Valley, Rosemount, Farmington (Charter renewal; Frontier competitive
franchise)
- Burnsville (Comcast renewal; CenturyLink and Frontier competitive franchises)
- Faribault (Charter)
- Little Falls (Charter)
- Owatonna (Charter)
- Quad Cities Cable Commission- Anoka, Andover, Champlin, Ramsey (Comcast
renewal; CenturyLink competitive franchise)
- Sherburne Wright County Cable Communications Commission (10 cities;
Charter)
C H A R T E R E D
Robert J.V. Vose
LOCAL GOVERNMENT LAW, TELECOMMUNICATIONS
AND UTILITY LAW, GOVERNMENT RELATIONS AND
ADMINISTRATIVE LAW, LITIGATION
J.D., University of Minnesota, 1994
B.A., University of Wisconsin, Madison, 1990
Attended Gustavus Adolphus College, 1986-88
PRIMARY PRACTICE AREAS
Bob Vose is the City Attorney for Independence, Belle Plaine, Oak Grove, Pine Island, and Victoria.
He has also represented many municipalities and municipal joint powers entities in all aspects of cable
television regulation, telecommunications law, telecommunications infrastructure development, and
right-of-way management issues. Mr. Vose advises municipal clients in cable franchise administration
and enforcement, franchise renewals and transfers, competitive franchising, and development of
municipal systems. He has also represented clients in district courts and the Minnesota Court of
Appeals on a number of occasions.
BACKGROUND
Mr. Vose joined Kennedy & Graven in 1999. Mr. Vose began his career working with hundreds of
municipalities around the country in the rapidly evolving area of municipal telecommunications
regulation and right-of-way management. Mr. Vose concentrates on understanding and developing
the unique needs of his municipal clients: from the smallest rural municipalities to the largest
metropolitan -area cities. Mr. Vose is a member of the Minnesota Association of Community
Telecommunications Administrators (MACTA), an association of municipal telecommunications
regulators and managers affiliated with the League of Minnesota Cities. Mr. Vose has served as both
legal counsel and lobbyist for the organization.
MEMBERSHIPS AND PROFESSIONAL ACTIVITIES
Mr. Vose is a member of the American, Minnesota State and Hennepin County Bar Associations
and the Communications Law Section of the Hennepin Bar. He is also a member of the National
Association ofTelecommunications Officers and Advisors (NATOA) and MACTA, and is on the
Board of Directors for the Minneapolis Telecommunications Network.
PERSONAL
Mr. Vose lives in Edina and enjoys sports of all kinds including tennis, hockey and golf. Mr. Vose
spends time traveling, reading and is a former chair of the Minneapolis Telecommunications Network
and was elected member of the Linden Hills Neighborhood council.
"I enjoy working with local governments to ensure that telecommunications services and facilities
both meet the needs of the community and local institutions but also provide an important
community development tool."