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HomeMy WebLinkAboutAGENDA REPORT 1999 0120 CC REG ITEM 11ETO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council ��`b.I ITEM II • E • CITY OF MOORPARKC, CALIFORNIA City Council Meeting ACTION: j r; � f";j &t A u ch o n . 1 ' 19�r) BY- John E. Nowak, Assistant City Manager 06 January 1999 (Council Meeting of 01- 20 -99) SUBJECT: Consider Resolution No. 99- Amending Resolution No. 84 -99 relating to the Entertainment Express Ltd. Cable Television Franchise and Repealing Resolution No. 98 -1550. BACKGROUND: On December 2, 1998 the City Council adopted Resolution No. 98 -1550 which granted an extension of the cable television franchise held by Entertainment Express Ltd. to December 20, 2000. The potential purchaser of Entertainment Express Ltd. has requested clarification of some portions of the resolution. DISCUSSION: On December 2, 1998 the City Council approved an extension of the cable television franchise held by Entertainment Express Ltd. (EEL) from June 1999 to December 20, 2000. The extension resolution (Resolution No. 98- 1550) also imposed certain conditions and requirements on EEL, including requirements for a sale of the company to a national cable provider. The potential buyer of the company has requested clarification of some sections of the adopted resolution. These are described below. The Section reference is to Resolution 98 -1550 and the changes are shown on the attached legislative formatted resolution. Section 3: This is a clarification of what constitutes Channel 10, the fact the signal quality must equal that received from TCI, and that the government access channel 000 233 Resolution No. 99- : EEL Franchise Extension Meeting of 20 January 1999 Page 02 must remain on Channel 10 in the lineup unless approved by the City in writing. Section 10: This clarifies the cable company's specific waiver of rights for the franchise renewal process that will occur later this year. Section 8(2): This pushes the filing deadline for a change in ownership from January 15 to February 1 as a result of the clarification action. Section 8(3) The addition of the six channels to the basic lineup must remain through December 31, 1999. The Grantee can change the lineup after that subject to applicable law and the franchise agreement. Section 8(4): The freeze on rates is to remain through November 30, 1999. Any rate increases after that date must be conducted in compliance with federal law, the franchise agreement and must be noticed to the City in advance. Section 8(7): The franchise holder may not be located in a residential area of the City after July 1,1999. If the grantee's offices are located outside of Moorpark it must offer and maintain acceptable service levels to its local subscribers. Section 8(8)_ The grantee's responsibility at the three schools is only to provide a single connection point at each site and offer basic cable service. Anything beyond that is the District's responsibility. Existing Resolution No. 98 -1550 would also be repealed in its entirety. EEL has paid the administrative fee ($20,000) and the contribution to the cable system ($9,000) called for in Resolution 98 -1550. The change of ownership fee ($15,000) is due within ten days of Council's approval of the transfer. 000234 Resolution No. 99- EEL Franchise Extension Meeting of 20 January 1999 Page 03 STAFF RECOMMENDATION• That the City Council adopt Resolution No. 99- related to the Entertainment Express Ltd. cable franchise agreement and repealing Resolution No. 98 -1550. Attached: Resolution 98 -1550 - legislative format Resolution 99- 000235 RESOLUTION NO. 98 -1550 A RESOLUTION OF THE CITY COUNCIL MOORPARK, CALIFORNIA, AMENDING RE6c 99 BY APPROVING MODIFICATIONS TELEVISION FRANCHISE HELD BY EXPRESS LTD. AND EXTENDING FRANCHISE TO DECEMBER 20, 2000. OF THE CITY OF >OLUTION NO. 84- TO THE CABLE ENTERTAINMENT SAID MODIFIED WHEREAS, Mountain Meadows Cable Television / Entertainment Express Ltd. has been granted a non - exclusive franchise to provide a cable television service within the City of Moorpark; and WHEREAS, said franchise is scheduled to expire on June 10, 1999; and WHEREAS, Entertainment Express Ltd. has made application to the City for an extension of said franchise to permit a transfer of ownership of said franchise; and WHEREAS, the City Council Cable Franchise Ad Hoc Committee has reviewed the application request and has made a recommendation that the franchise be extended subject to certain amendments to said franchise. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That Section 2 of Resolution 84 -99, as amended by said Resolution No. 84 -117, be and the same is hereby amended to read as follows: "SECTION 2. GRANT OF NON - EXCLUSIVE FRANCHISE A non - exclusive franchise to construct, operate and maintain a cable television system serving the Property described in Exhibit "A ", until 11:59 p.m. December 20, 2000 is hereby granted to Grantee, with all the rights and privileges and subject to each and all of the terms and conditions of this Resolution. For the purposes of this Resolution, "Cable Television System" means a system of antennas...." 000236 Resolution No. 98 -1550 Page 2 of 6 SECTION 2. That Section 5 of said Resolution No. 84- 99 be and the same is hereby amended to read as follows: "SECTION DURATION F GRANT The term of the franchise shall be from the Effective Date to 11:59 p.m. on December 20, 2000. The franchise shall be effective on...." SECTION 3. That Section 7.8 to said Resolution No. 84 -99 be and read as follows: "SECTION 7 CHANNEL 1 Grantee shall assure that continuous and good quality transmission of a Channel 10 signal (consistent with the quality of the signal received by Grantee is provided and maintained to all subscribers and that such transmission is included in 'Basic SECTION 4. That Section 9.1 of said Resolution No. 84 -99 be and the same is hereby amended to read as follows: "SECTION 9.1 AMOUNT OF FEE Grantee and its successors and assigns shall, during the life of the franchise, pay to the City three percent (3 %) of gross annual collected receipts of the Cable Television System; provided, however, effective January 1, 1999, the Grantee and its successors and assigns shall, during the then remaining life of the franchise, pay to the City five percent (5 %) of gross annual collected receipts of the Cable Television System...." 00023? Resolution No. 98 -1550 Page 3 of 6 SECTION 5. That Section 9.4 to said Resolution No. 84 -99 be and read as follows: SECTION 9.4 CHARACTER GENERATOR SYSTEM Grantee shall make a one -time payment of twenty thousand dollars ($20,000.00) to cover City's administrative costs for the extension review. Such payment shall be due on the adoption of this Resolution and shall be expended at the City's sole discretion." SECTION 6. That Section 16 of said Resolution No. 84 -99 be and the same is hereby amended to read as follows: "SECTION 16 RENEWAL On or before June 30, 1999, Grantee shall notify the City, in writing, of its intent, if any, to renew the franchise. Failure to so notify shall constitute a waiver of any and all rights Grantee may have as to renewal. Grantee and City agree to each use their best efforts to implement and develop an informal renewal procedure that is fair to Grantee and to the City upon Grantee giving the City its notice of intent to renew. above, no other renewal rights shall be conferred upon or waived by either party consequent to Grantee notifying the City of its intent to renew. Except as provided above, no other renewal rights shall be conferred upon or waived by either party consequent to Grantee notifying the City of its intent to renew. Nothing in this Section 26 shall be construed so as to limit the City's ability to ensure cable television throughout the service area." SECTION 7. That Section 23 of said Resolution No. 84 -99 be and the same is hereby amended to read as follows: 000238 Resolution No. 98 -1550 Page 4 of 6 "SECTION 23 CHANGE OF OWNERSHIP OF FRANCHISE Grantee's ability to provide cable television to subscribers within its service area, the level of its corporate goodwill, and its management structure are unique and constitutes material consideration in the City's decision to grant this franchise. As such, the franchise shall not be assigned, transferred, sold or otherwise subjected to a change of ownership or control without the prior approval of the City Council. In the event the City Council does allow the franchise to be assigned, transferred, sold or otherwise subjected to a change of ownership or control, then an administrative fee of fifteen thousand dollars ($15,000) shall be assessed and become due ten (10) days after said approval by the City Council." SECTION 8. That in consideration of the granting of the franchise extension, Mountain Meadows Cable Television /Entertainment Express Ltd. shall, as has agreed to, adhere to the following conditions: 1. The conditions set forth in this resolution shall be strictly adhered to. 2. Entertainment Express Ltd. shall proceed with the application for a change of ownership to a major national cable provider, and that said application is to be submitted to the City no later than 5 1999. 3. Entertainment Express Ltd. shall add six (6) channels to its basic service at no additional cost to subscribers (Cartoon Network, Comedy Channel, E., Sci -Fi, Animal Planet and Golf 4. No rate increase shall take uring the 1998- 00004439 Resolution No. 98 -1550 Page 5 of 6 99 cycle that covers the period of December 1, 1998 through November 30, 1999. 5. A direct customer service telephone line is to be established to handle complaints from subscribers. 6. Entertainment Express Ltd. shall provide a contribution to the City for cable related improvements in the amount of $9,000 no later than December 22, 1998. 7. =delater t hair office July 1, 1999 a local is to be established within a operation Communications Federal J _ _ 8. Cable service the three (3) public schools located within the Entertainment Express Ltd. service area, SECTION s3 M. This Resolution shall be in full force and effect upon approval of the City Council. 000240 Resolution No. 98 -1550 Page 6 of 6 SECTION 44 0. That the City Clerk shall certify to the adoption of this Resolution and shall present a certified copy of same to Entertainment Express, Ltd. PASSED AND ADOPTED this 20th day of January 1999. ATTEST: Deborah S. Traffenstedt, City Clerk Patrick Hunter, Mayor 000241 RESOLUTION NO. 99- A RESOLUTION OF THE CITY COUNCIL MOORPARK, CALIFORNIA, AMENDING REf 99 BY APPROVING MODIFICATIONS TELEVISION FRANCHISE HELD BY EXPRESS LTD. AND EXTENDING FRANCHISE TO DECEMBER 20, 2000 RESOLUTION NO. 98 -1550. OF THE CITY OF ;OLUTION NO. 84- TO THE CABLE ENTERTAINMENT SAID MODIFIED AND REPEALING WHEREAS, Mountain Meadows Cable Television / Entertainment Express Ltd. has been granted a non - exclusive franchise to provide a cable television service within the City of Moorpark; and WHEREAS, said franchise is scheduled to expire on June 10, 1999; and WHEREAS, Entertainment Express Ltd. has made application to the City for an extension of said franchise to permit a transfer of ownership of said franchise; and WHEREAS, the City Council Cable Franchise Ad Hoc Committee has reviewed the application request and has made a recommendation that the franchise be extended subject to certain amendments to said franchise. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That Section 2 of Resolution 84 -99, as amended by said Resolution No. 84 -117, be and the same is hereby amended to read as follows: "SECTION 2 GRANT OF NON - EXCLUSIVE FRANCHISE A non - exclusive franchise to construct, operate and maintain a cable television system serving the Property described in Exhibit "A ", until 11:59 p.m. December 20, 2000 is hereby granted to Grantee, with all the rights and privileges and subject to each and all of the terms and conditions of this Resolution. For the purposes of this Resolution, "Cable Television System" means a system of antennas...." 000242 Resolution No. 99- Page 2 of 6 SECTION 2. That Section 5 of said Resolution No. 84- 99 be and the same is hereby amended to read as follows: "SECTION 5. DURATION OF GRANT The term of the franchise shall be from the Effective Date to 11:59 p.m. on December 20, 2000. The franchise shall be effective on...." SECTION 3. That Section 7.8 to said Resolution No. 84 -99 be and read as follows: "SECTION 7.8 CHANNEL 10 Grantee shall assure that continuous and good quality transmission of a Channel 10 signal (consistent with the quality of the signal received by Grantee from the Tele- Communications, Inc. of Ventura County signal connection) is provided and maintained to all subscribers and that such transmission is included in `Basic Cable Service'. Said Channel 10 is the government access channel required pursuant to Sections 5.06.506 and 5.06.512 of the Moorpark Municipal Code. Said broadcast of the government access channel shall remain on Channel 10 unless the City shall give written approval to the Grantee that the broadcast be elsewhere in the channel listings." SECTION 4. That Section 9.1 of said Resolution No. 84 -99 be and the same is hereby amended to read as follows: _`SECTION 9.1 AMOUNT OF FEE Grantee and its successors and assigns shall, during the life of the franchise, pay to the City three percent (3 %) of gross annual collected receipts of the Cable Television System; provided, however, effective January 1, 1999, the Grantee and its successors and assigns shall, during the then remaining life of the franchise, pay to the City five percent (5 %) of gross annual collected receipts of the Cable Television System...." X100243 Resolution No. 99- Page 3 of 6 SECTION 5. That Section 9.4 to said Resolution No. 84 -99 be and read as follows: SECTION 9.4 CHARACTER GENERATOR SYSTEM Grantee shall make a one -time payment of twenty thousand dollars ($20,000.00) to cover City's administrative costs for the extension review. Such payment shall be due on the adoption of this Resolution and shall be expended at the City's sole discretion." SECTION 6. That Section 16 of said Resolution No. 84 -99 be and the same is hereby amended to read as follows: _`SECTION 16. RENEWAL On or before June 30, 1999, Grantee shall notify the City, in writing, of its intent, if any, to renew the franchise. Failure to so notify shall constitute a waiver of any and all rights Grantee may have as to renewal. Grantee and City agree to each use their best efforts to implement and develop an informal renewal procedure that is fair to Grantee and to the City upon Grantee giving the City its notice of intent to renew. Grantee specifically waives without limitations, any restriction or limitation on the City for not providing the full number of days for review of the franchise renewal application. All other rights of the Grantee and the City under applicable Federal law and the Moorpark Municipal Code remain intact. Except as provided above, no other renewal rights shall be conferred upon or waived by either party consequent to Grantee notifying the City of its intent to renew. Except as provided above, no other renewal rights shall be conferred upon or waived by either party consequent to Grantee notifying the City of its intent to renew. Nothing in this Section 26 shall be construed so as to limit the City's ability to ensure cable television throughout the service area." SECTION 7. That Section 23 of said Resolution No. 84 -99 be and the same is hereby amended to read as follows: 00024'14 Resolution No. 99- Page 4 of 6 "SECTION 23 CHANGE OF OWNERSHIP OF FRANCHISE Grantee's ability to provide cable television to subscribers within its service area, the level of its corporate goodwill, and its management structure are unique and constitutes material consideration in the City's decision to grant this franchise. As such, the franchise shall not be assigned, transferred, sold or otherwise subjected to a change of ownership or control without the prior approval of the City Council. In the event the City Council does allow the franchise to be assigned, transferred, sold or otherwise subjected to a change of ownership or control, then an administrative fee of fifteen thousand dollars ($15,000) shall be assessed and become due ten (10) days after said approval by the City Council." SECTION 8. That in consideration of the granting of the franchise extension, Mountain Meadows Cable Television /Entertainment Express Ltd. shall, as has agreed to, adhere to the following conditions: 1. The conditions set forth in this resolution shall be strictly adhered to. 2. Entertainment Express Ltd. shall proceed with the application for a change of ownership to a major national cable provider, and that said application is to be submitted to the City no later than February 1, 1999. 3. Entertainment Express Ltd. shall add six (6) channels to its basic service at no additional cost to subscribers (Cartoon Network, Comedy Channel, E., Sci -Fi, Animal Planet and Golf Channel) as part of its basic lineup through December 31, 1999. The makeup of the channel lineup after this period may be changed by Grantee, subject to applicable law and the operative franchise agreement. 000245- Resolution No. 99- Page 5 of 6 4. No increase shall take place to the current rates (excluding franchise fees) during the 1998 -99 cycle that covers the period of December 1, 1998 through November 30, 1999. Any proposed rate increase after that date shall be subject to all applicable Federal laws and regulations, applicable franchise agreement and prior notification to the City. 5. A direct customer service tel established to handle subscribers. 6. Entertainment Express Ltd. contribution to the City improvements in the amount than December 22, 1998. .ephone line is to be complaints from shall provide a for cable related of $9,000 no later 7. After July 1, 1999 no local Grantee office is to be established within a residential zoned area of the City. Any Grantee office, whether located in the City or in another city, must assure that acceptable service levels are offered to and maintained for Moorpark customers and that the hours of operation are consistent with Federal Communications Commission guidelines. 8. Cable service installation and operation to each of the three (3) public schools located within the Entertainment Express Ltd. service area, which shall include only the wiring to a primary building at each site and Basic Service programming, shall be the responsibility of the Grantee and shall be guaranteed and maintained effective no later than March 16, 1999. SECTION 9. Resolution No. 98 -1550 is hereby repealed in its entirety. SECTION 10. This Resolution shall be in full force and effect upon approval of the City Council. 000246 Resolution No. 99- Page 6 of 6 SECTION 11. That the City Clerk shall certify to the adoption of this Resolution, shall cause a certified resolution to be filed in the book of original Resolutions, and shall present a certified copy of same to Entertainment Express, Ltd. PASSED AND ADOPTED this 20th day of January 1999. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 000247