HomeMy WebLinkAboutAGENDA REPORT 1999 0203 CC REG ITEM 09ATO:
FROM:
DATE:
MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
ITEM 0
ss
Ca -� C I,TTOR,'YIA
of
N() • `KI ,-__1.5
of act-
John E. Nowak, Assistant City Manager
27 January 1999 (Council Meeting of 02- 03 -99)
SUBJECT: Consider Action Regarding A change of Control for
the Cable Communications Franchise held by TCI
Cablevision of California, Inc.
BACKGROUND: In March 1996 the City Council approved
transferring a cable television franchise to
Telecommunications, Inc. of Ventura County (TCI) which is a
part of TCI Cablevisions of California, Inc. The national
parent company, Tele- Communications, Inc. is planning to
merge with AT &T. The Moorpark Municipal Code requires City
approval for the new company to assume the franchise in
Moorpark. This matter was continued from the December 16,
1998 meeting to January 20, 1999 and again to the February
3, 1999 meeting, both at TCI's request.
DISCUSSION: TCI of Ventura County currently holds a
franchise to provide cable television service in the City
of Moorpark. In June 1998 the parent company of TCI agreed
to a merger with AT &T that would operate the cable
television franchises. Section 5.06.312(A) 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 (see attached).
Section 5.06.320 of the Municipal Code provides for the
City Council to charge a franchise fee upon change of
control that is in addition to any administrate fee. The
fee is identified in Section 5.06.200(20) of the Code.
Staff has identified a franchise fee of $25,000 to be
KrXiTLITY
TCI /AT &T Merger
Meeting of 03 February 1999
Page 02
charged for the TCI /AT &T change of control approval. This
is similar to the fee requirement in the Entertainment
Express Ltd. extension resolution and as obtained from
refuse franchise change of control.
TCI continues to refuse to agree to pay any franchise fee.
On January 26 staff had a telephone conversation with
representatives from TCI in an effort to resolve the issue.
TCI has indicated they might "possibly" offer one video
camera in lieu of the referenced transfer fee. Staff felt
this was non - responsive to the City's fee requirement. TCI
also submitted a letter to the Assistant City Manager, with
copies to the Council, in which they reference their letter
of January 15, 1999. In it TCI indicates they want the
City Attorney to provide them a written response to their
January 15 letter. The City Attorney has indicated that it
is inappropriate for any attorney to provide a legal
opinion to a third party.
Attached for the Council's consideration are two (2)
resolutions. The first would approve the change in control
with the franchise fee payment requirement. The second
would deny the application request on the basis of TCI's
refusal to comply with provisions of the Municipal Code.
Neither action affects any other condition nor requirement
of the current franchise held by TCI, which expires on
December 20, 2000.
This matter was noticed for a public hearing at the
December 16,1998 meeting the hearing was opened and
continued. The hearing remains open.
RECOMMENDATION: That the City Council determine if it
desires to disapprove or approve a change in control of the
cable communications franchise held by TCI Cablevision of
California, Inc. and adopt the appropriate resolution.
Attached:
Resolution No. 99- "A" - Approving with fee
Resolution No. 99- "B" - Denying
Municipal Code Sections 5.06.200(20), 5.06.312(A) and
5.06.320.
lit t
RESOLUTION NO. 99- "A"
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, APPROVING THE CHANGE OF
CONTROL OF THE CABLE COMMUNICATIONS FRANCHISE
HELD BY TCI CABLEVISION OF CALIFORNIA, INC.
WHEREAS, TCI Cablevision of California, Inc. through
TCI of Ventura County (hereinafter "Franchisee ") is duly
authorized to 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 "Franchise ") granted
by the Franchise Authority in March 1996; and
WHEREAS, pursuant
Restructuring and
(hereinafter "AT &T "'
subsidiary of AT &T
Communications, Inc.,
"TCI "), dated as of
Agreement ") , Merger
TCI as the surviving
result of the tran
Agreement, TCI will
AT &T (hereinafter "Tr,
to the Agreement and Plan of
rporation
y owned
ind Tele-
reinafter
ITC-L "Merger
TCI with
and as a
the Merger
absidiary of
WHEREAS, Francl to hold the
Franchise after cons ansactions between
AT &T and TCI; and
WHEREAS, Federal Commission's Form 394
with respect to the Transactions has been filed with the
Franchise Authority; and
WHEREAS, Section 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, TCI has agreed to pay related administrative
costs incurred by the City in preparation and review of
this change in control request; and
Resolution No. 99-
Page 2
WHEREAS, TCI has agreed to pay a "Franchise Transfer
Fee" in the amount of $25,000 as part of the request for
change of control; and
WHEREAS, TCI and AT &T have requested consent by the
Franchise Authority to the Transactions;
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.
SECTION 2. That a Franchise Transfer Fee of
$25,000 shall be due and payable upon the adoption of this
resolution.
SECTION 3. This Resolution shall become effective
upon its adoption and compliance with Section 2 above.
SECTION 4. 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 3rd day of February 1999.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
1 ! 1'
RESOLUTION NO. 99- "B"
A RESOLUTION OF THE CITY OF MOORPARK, CALIFORNIA,
DENYING THE CHANGE OF CONTROL OF THE CABLE
COMMUNICATIONS FRANCHISE HELD BY TCI CABLEVISION
OF CALIFORNIA, INC.
WHEREAS, TCI Cablevision of California, Inc. through
TCI of Ventura County (hereinafter "Franchisee ") is duly
authorized to 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 "Franchise ") granted
by the Franchise Authority in March 1996; and
WHEREAS, pursuant to the Agreement and Plan of
Restructuring and Merger among AT &T Corporation
(hereinafter "AT &T "), a newly formed wholly owned
subsidiary of AT &T (hereinafter "Merger Sub ") , and Tele-
Communications, Inc., the parent of Franchisee (hereinafter
"TCI "), dated as of June 23, 1998 (hereinafter "Merger
Agreement ") , Merger Sub will merge with and into TCI with
TCI as the surviving corporation in the merger, and as a
result of the transactions contemplated by the Merger
Agreement, TCI will become a wholly owned subsidiary of
AT &T (hereinafter "Transactions "); and
WHEREAS, Federal Communication Commission's Form 394
with respect to the Transactions has been filed with the
Franchise Authority; and
WHEREAS, Section 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, Sections 5.06.200 and 5.06.320 allow the City
to charge a franchise fee for any change of control; and
WHEREAS, TCI has agreed to pay related administrative
costs incurred by the City in preparation and review of
this change in control request but have refused to pay and
franchise fee as permitted by the Moorpark Municipal Code;
and
it 1
Resolution No. 99-
Page 2
WHEREAS, TCI and AT &T recognize consent by the
Franchise Authority to the Transactions is required;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MOORPARK DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Franchise Authority hereby denies
approval of a change in control of the Franchise as a
result of the Transactions on the basis of TCI's refusal to
pay the franchise fee provided for by the Moorpark
Municipal Code.
SECTION 2. This Resolution shall become effective
upon its adoption.
SECTION 3. A copy of this Resolution shall be
submitted to the Federal Communications Commission.
SECTION 4. 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 3rd day of February 1999.
ATTEST:
oeboran S. Traffenstedt, City Clerk
Patrick Hunter, Mayor
if