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HomeMy WebLinkAboutAGENDA REPORT 1999 0818 CC REG ITEM 09GITEM 9'. C;r. CITY OF MO ORPARK, CALIFOILNIA City Council Fleeting of CITY OF MOORPARK AGENDA REPORT BY: 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 Change of Control of the Cable Communications Franchise held by Century Communications Corp. as part of Century -TCI California L.P. within the Franchise Area Formerly Held by TCI Cablevision of California, Inc. BACKGROUND: In May 1999, the City Council approved a franchise transfer from TCI Cablevision of California, Inc. to Century -TCI California LP. Adelphia Communications Corporation is purchasing Century Communications and therefore Council's approval of a change of control the Century portion of the Century -TCI Cablevision franchise which covers the former TCI Cablevision of California, Inc. area is required. DISCUSSION: Adelphia Communications Corporation is purchasing Century Communications Corp. Pursuant to the Moorpark Municipal Code, the City Council must give its consent to any change of control of a franchise ownership. In May 1999 the Council approved the franchise transfer from TCI to Century -TCI California L.P. (At its August 18 meeting the City Council is being requested to approve a transfer of the franchise currently held by Century Communications to Century -TCI California L.P.) Since two franchises continue to exist in the City of Moorpark, although both will be under the control of Century -TCI, 0 0025 Franchise Change of Control - Century to Adelphia (TCI) Meeting of 18 August 1999 Page 02 Council approval is required for that portion of the Century -TCI franchise that encompasses the former TCI of Ventura County area. The Council's Ad Hoc Committee on Cable Television (Mayor Pro Tem Evans and Councilmemebr Harper) met with representatives from Adelphia Communications and TCI on July 23. The Committee recommended the change of control subject to the conditions contained in the resolution. These include: 1. Adelphia Communications shall not 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 provision 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 0002�G Franchise Change of Control - Century to Adelphia (TCI) Meeting of 18 August 1999 Page 03 the purchase of a bundle of services in order to get any one service. This matter has been advertised for a public hearing. The Council is requested to take testimony and make a decision on this change of control 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 change of control to Adelphia Corporation of the cable communications by Century Communications Corp. as part California L.P. within the franchise are by TCI Cablevision of California, Inc. Attached: Resolution No. 99- the franchise Communications franchise held of Century -TCI a formerly held 0002 7 RESOLUTION NO. 99- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING A CHANGE OF CONTROL TO ADELPHIA COMMUNICATIONS CORPORATION OF THAT PORTION OF THE CABLE COMMUNICATIONS FRANCHISE HELD BY CENTURY COMMUNICATIONS CORP. AS PART OF CENTURY -TCI CALIFORNIA L.P. WITHIN THE FRANCHISE AREA FORMERLY HELD BY TCI CABLEVISION OF CALIFORNIA, INC. WHEREAS, Century Communications Corp. (hereinafter "Franchisee ") was party to a transfer of a Franchise held by TCI Cablevisions of California Inc. to Century -TCI California L.P. pursuant to Resolution No. 99 -1611; and WHEREAS, on March 5, 1999 the parent company of Franchisee, Century Communications Corp. (hereinafter "Century ") entered into an Agreement and Plan of Merger with Adelphia Communications Corporation (hereinafter "Adelphia ") providing among other thing, the sale of stock and transfer of control of Century to Adelphia; and WHEREAS, Century and Adelphia have jointly submitted to the Franchise Authority an application on Federal Communications Commission Form 394, requesting consent for the Transfer of Control pursuant to Section 5.06.310 of the Moorpark Municipal Code; and WHEREAS, Sections 5.06.310 and 5.06.312 of the Moorpark Municipal Code requires the City's consent for any change in control of a franchise prior to the change in control occurring; and WHEREAS, Franchisee will continue to hold the Franchise after consummation of the Transactions between Century and Adelphia which constitutes a change of control of franchise; and WHEREAS, Century has agreed to pay related administrative costs incurred by the City in preparation and review of this change in control request, such fees having been paid; and 0002011U-05- Resolution No. 99- Page 02 WHEREAS, Century has offered to make an equipment grant of $5,000 to be expended at the City's sole discretion, which payment has been received; and WHEREAS, the Franchise Authority has reviewed the application and believes it is in the best interest of the community to grant the Transfer of Control from Century to Adelphia for the franchise area formerly held by TCI Cablevisions of California, Inc. 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 Change in Control of the Franchise as a result of the Transactions to the extent such consent is required by the terms of the Franchise and the Moorpark Municipal Code and as provided for in this Resolution. SECTION 2. That the approval of the Change of Control by the Franchise Authority shall in no manner whatsoever abrogate, modify or diminish the requirements contained in the Franchisee. SECTION 3. Adelphia may transfer the system and /or the Franchise, or control related thereto, to any entity controlling, controlled by, or under control of Adelphia 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 4. As an expressed condition of the Franchise Authority's consent, Adelphia shall not at anytime take any action whatsoever that would modify or in any manner diminish the Franchise Authority's existing Certification from the Federal Communications Commission to regular basis 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. However, at such time as effective competition exists within the 00000G."..,�) Resolution No. 99- Page 03 Franchise Area, the Franchise the right of Franchisee to pursuant to applicable law. Authority shall not abridge petition for decertification 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. The Franchise Authority confirms that the Franchise is valid and outstanding and in full force and effect pursuant to Resolution No. 96 -1190 and resolutions amending same. SECTION 7. The provisions of this Resolution shall be binding upon any entity to which this Franchise is transferred. SECTION 8. The Franchise Authority's approval of this Change of Control shall be effective upon adoption of this Resolution. 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 000��0