HomeMy WebLinkAboutAGENDA REPORT 1999 0818 CC REG ITEM 09EITEM � •
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
of
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CITY OF MOORPARK
AGENDA REPORT
TO: Honorable City Council
FROM: John E. Nowak, Assistant City Manager
DATE: 04 August 1999 (Meeting of 08/18/99)
SUBJECT: Consider Resolution No. 99- Approving the
Franchise Transfer of the Cable Communications
Franchise held by Century Communications Corp. to
Century -TCI California L.P.
BACKGROUND: Century Communications Corp. operates a
franchise in the City covering the former Entertainment
Express Ltd. Area. Century is now entering into a
partnership with TCI Cablevision of California where
certain assets of each company area being combined and /or
exchanged. As a result, the Moorpark cable television
franchise held by Century is being transferred to a new
entity, Century -TCI California L.P.
DISCUSSION: In April 1999 the City Council approved a
transfer of franchise from Mountain Meadows Cable
Television /Entertainment Express Ltd. to Century
Communications Corp. Subsequently, Century Communications
and TCI Cablevision of California have entered into an
agreement for the exchange and sharing of certain assets
including franchise agreements. Century has submitted a
request for the City of Moorpark to approve the franchise
transfer from Century Communications Corp. to Century -TCI
California L.P. In May 1999 the City Council approved the
franchise transfer from TCI to the new corporate entity.
0002:"2;
Franchise Transfer - Century to Century -TCI
Meeting of 18 August 1999
Page 02
On July 23 the Council's Ad Hoc Committee on Cable
Television (Mayor Pro Tem Evans and Council member Harper)
met with representatives from TCI and Adelphia
Communications regarding the proposed transfer. The
Committee recommended approval of the franchise transfer
subject to the conditions contained in the resolution.
Resolution No. 99- would approve the franchise transfer
with the following conditions:
1. Neither Century nor TCI will take any actions that
would modify or diminish the City's current
certification from the Federal Communications
Commission to regulate basic cable rates within the
franchise area, until such time as there is effective
competition in the City.
2. An equipment grant of $5,000 is to be provided to the
City. This has been received.
3. The Franchise, Chapter 5.06 of the Municipal Code and
applicable resolutions are recognized as the
regulatory basis for the franchise.
4. Any future transfers, exchanges or assignments of the
franchise are subject to the provisions of the
Municipal Code and the City will have final authority
to determine compliance with the Code.
5. All conditions initially imposed on the Entertainment
Express - Century Communications transfer will remain
in effect through November 30, 1999 as required by
Resolution No. 99 -1589.
The resolution also contains a notice of the City's intent
to contain provisions for open access and unbundled
services in any franchise renewals or extensions. Open
access refers to allowing any internet service provider the
ability to use the cable system for internet access, and
unbundled services refers to providing the various cable
services as separate packages to customers and not require
the purchase of a bundle of services in order to get any
one service.
0002:.3
Franchise Transfer - Century to Century -TCI
Meeting of 18 August 1999
Page 03
This matter has been advertised for a public hearing. The
Council is requested to take testimony and make a decision
on this franchise transfer application.
RECOMMENDATION•
1. Open the public hearing and take testimony.
2. Close the public hearing and enter into discussion on
the matter.
3. Adopt Resolution No. 99 -_ approving the franchise
transfer of the cable communications franchise held by
Century Communications Corp. to Century -TCI California
L. P.
Attached: Resolution No. 99-
00021
RESOLUTION NO. 99-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, APPROVING THE FRANCHISE
TRANSFER OF THE CABLE COMMUNICATIONS FRANCHISE
HELD BY CENTURY COMMUNICATIONS CORP. TO CENTURY -
TCI CALIFORNIA L.P.
WHEREAS, Century Communications Corp. (hereinafter
"Franchisee ") is duly authorized to own, operate and
maintain a cable communications system in Moorpark,
California (hereinafter the "System ") by the City of
Moorpark (hereinafter "Franchise Authority ") pursuant to a
franchise (hereinafter as amended to date, the "Franchise ")
initially granted by the Franchise Authority in June 1984;
and
WHEREAS, Franchisee and Century -TCI California L.P.
(hereinafter "Transferee ") , a partnership between certain
affiliates of Century Communications Corp and certain
affiliates of Franchisee, are parties to an asset
contribution agreement (hereinafter "Contribution
Agreement ") pursuant to which the System and the Franchise
(after one or more intermediate transfers pursuant to an
internal restructuring) will be transferred to Transferee
(hereinafter "Transfers); and
WHEREAS, Franchisee and Transferee have requested
consent by the Franchise Authority in accordance with the
requirements of the Franchise and have filed a Federal
Communication Commission's Form 394 with respect to the
Transfer; and
WHEREAS, Section 5.06.310 of the Moorpark Municipal
Code requires the City's consent for any transfer of a
franchise prior to the transfer occurring; and
WHEREAS, TCI has agreed to pay related administrative
costs incurred by the City in preparation and review of
this franchise transfer request, which fees have been paid
in full; and
WHEREAS, Century has agreed to provide an equipment
grant of $5,000 to be expended at the City's sole
0 032.5
Resolution No. 99-
Page 02
discretion as consideration for the Franchise Authority's
review and approval, which payment has been received;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MOORPARK DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Franchise Authority hereby consents
to and approves a transfer of the Franchise as a result of
the Contribution Agreement to the extent such consent is
required by the terms of the Franchise and the Moorpark
Municipal Code and subject to each and every condition
contained herein in order to fulfill the requirement of
satisfying local cable communications standards and goals.
SECTION 2. As an expressed condition of the
Franchise Authority's consent, neither the Franchisee nor
the Transferee shall at any time take any actions
whatsoever that would modify or in any manner diminish the
Franchise Authority's existing Certification from the
Federal Communications Commission to regulate basic cable
rates within the area of the Franchise. The Franchise
Authority does herewith state that any such action may be
grounds to terminate the Franchise. Both Franchisee and
Transferee are herewith placed on notice of same. However,
at such time as effective competition exists within the
Franchise Area, the Franchise Authority shall not abridge
the right of Franchisee to petition for decertification
pursuant to applicable law.
SECTION 3. The Franchise Authority confirms as
follows: (1) that the Franchise was properly granted or
transferred to Franchisee; (2) the Franchise, Chapter 5.06
of the Moorpark Municipal Code, Resolutions No. 99 -1565,
99 -1574 and 99 -1589, and this Resolution represent the
entire understanding of the parties and Franchisee has no
obligations to the Franchise Authority other than those
specifically stated in said aforementioned documents; (3)
Franchise is materially in compliance with the provisions
of the Franchise and there exists no fact or circumstance
known to the Franchise Authority at the time of preparation
of this Transfer authorization which constitutes or which,
000:x; .0
Resolution No. 99-
Page 03
with the passage of time or the giving of notice or both,
would constitute a material default or breach under the
Franchise, or would allow the Franchise Authority to cancel
or terminate the rights thereunder, except upon the
expiration of the full term of the Franchise.
SECTION 4. That the approval of transfer by the
Franchise Authority shall in no manner whatsoever abrogate,
modify or diminish the requirements contained in the
Franchise.
SECTION 5. That it shall be the intent of the
Franchise Authority to require any renewals or extensions
of this Franchise to contain provisions for open access by
any cable communications provider for Internet services and
to provide unbundled services to cable communications
customers within the Franchise area.
SECTION 6. Transferee may transfer the System
and /or the Franchise, or control related thereto, to any
entity controlling, controlled by, or under control of
Transferee solely as permitted by Sections 5.06.310 and
5.06.312 of the Moorpark Municipal Code. The Franchise
Authority shall have the final authority to determine
compliance with said Section.
SECTION 7. The Franchise Authority hereby consents
to and approves the assignment, mortgage, pledge, or other
encumbrances, if any, of the System, or assets related
thereto, as collateral for a loan. The Franchise may be so
assigned, mortgaged, pledged or otherwise encumbered upon
written notification to the Franchising Authority no less
than ten (10) calendar days prior to such action.
SECTION 8. This Resolution shall be deemed
effective for the purposes of the Transfers upon the
consummation of the transaction contemplated by the
Contribution Agreement (hereinafter "Closing "), provided
that the conditions set forth in Sections 2 and 3 herein
have been fully complied with.
0002 .11.7
Resolution No. 99-
Page 04
SECTION 9. The City Clerk shall certify to the
adoption of this resolution and shall cause a certified
resolution to be filed in the book of original Resolutions.
PASSED AND ADOPTED this 18th day of August 1999.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
0002-1-S