R2006-26 ADOPTING CERTAIN CABLE-RELATED NEEDS AND INTERESTS

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LEGAL DEPARTMENT MEMORANDUM NO. 2006-3 February 15, 2006 TO: Honorable Mayor and City Council Members FROM: Steve Gar , ity Manager Wendy Mo nd, Corporation Counsel RE: Formal Needs Assessment Report — Cable Television Franchise Renewal Insight Communications Midwest, LLC ("Insight") provides cable service to residents of the City of Decatur ("City") on its own infrastructure under the terms of a non-exclusive franchise agreement dated August 1, 1988. The City, as local franchising authority, has the right to issue a cable franchise agreement, and to oversee and regulate the cable operator's compliance with the franchise provisions. The term of the existing franchise agreement expired on or about August 1, 2003. Insight sent a letter dated September 12, 2000 to the City requesting renewal of its cable television franchise. For approximately four years the City and Insight have been engaged in good faith, informal negotiations in hopes of arriving at new franchise terms and provisions. In June of 2003, the City forwarded a revised draft franchise document to Insight, including a list of provisions where information for further discussion was to be provided by Insight. On September 2, 2003, the City sent a letter to Insight regarding the City's public, educational and governmental ("PEG") and institutionat network ("I-NET") needs. On September 22, 2003 Insight provided the City with PEG and I-Net cost information far below the City's expectation. In early November of 2003, the City notified Insight that Mr. Stuart Chapman of Municipality Service Associates, Inc. had been retained to prepare a comprehensive needs ascertainment study for the City. The needs ascertainment and accompanying reports were completed in late 2004. The City and Insight met face-to-face on February 23, 2005 to discuss cable television franchise renewal. On March 23, 2005, the City forwarded a revised draft franchise to Insight for its review and consideration. On Wednesday, May 11, 2005, the City received an email from Mr. Jon Danielsen of Insight indicating that he had received the March correspondence and that InsighYs legal department was reviewing the document and would reply in a few weeks. To date, the City has received only a very limited amount of communication from Insight regarding cable television franchise renewal.