ORDINANCE NO. __________



The city of Duluth does ordain:

     Section 1. The franchise granting Charter the right and privilege to operate a cable television system is hereby extended to October 31, 2005, or until a new franchise agreement is executed, whichever shall first occur.

     Section 2. In granting this extension neither the city nor Charter waives any rights under the franchise or applicable law and both the city and Charter agree to comply with all terms and obligations of the franchise.

     Section 3. This ordinance shall become effective upon the occurrence of both of the following conditions:

     (a)  Pursuant to Section 82 of the City Charter, this ordinance shall be published verbatim in the official paper of the city of Duluth once a week for four successive weeks after its passage and shall take effect 30 days from and after its last publication;

     (b)  Charter’s acceptance of this ordinance and the franchise for the term specified in paragraph (1) above, provided Charter accepts and agrees to each and every term of this ordinance and the franchise within 14 days from the date this ordinance is adopted by the city council.

STATEMENT OF PURPOSE: The city’s cable franchise with Charter will expire on April 30, 2005. In November, the city’s consultant, Brian Grogan, initiated a desk review to determine whether Charter has been paying the city the amounts required under the current franchise. There was a delay in Charter providing the information due to concerns about confidentiality. The parties recently reached an agreement on the issue of confidentiality, and the information is now being provided by Charter. After the review is completed, franchise negotiations will begin. The purpose of this ordinance is to extend the term of the franchise to provide for completion of the desk review and the negotiations with Charter.