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Home My WebLink AboutAGENDA REPORT 2004 0421 CC REG ITEM 09BITEM ` °► • 8 • fTTV OF' T100RPARK. C"ALTFORNTA City C'menril Nfve'inZ �{ A/- Ar•4 -(')';: �d MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Hugh R. Riley, Assistant City Manage DATE: April 12, 2004 (City Council Meeting of April 21, 2004) SUBJECT: Cable Television Franchise Interim Extension BACKGROUND: On June 6, 1984, the City Council of the City of Moorpark adopted Resolution No. 84 -99 granting a 15 -year, non - exclusive franchise for the operation of a cable television system to serve the Urban West Communities' Mountain Meadows Housing Development to Mountain Meadows Cable Television, L.P. ( "Mountain Meadows System "). Prior to this franchise's scheduled June 6, 1999 expiration it was extended to December 20, 2000 by Resolution No. 98 -1550. On November 21, 1990, the City Council adopted Ordinance No. 134 granting a ten -year renewal of a non - exclusive franchise to operate a cable television system in Moorpark to The Chronicle Publishing Co. doing business as Ventura County Cable Vision ( "the Moorpark System "). This franchise was in operation when the City incorporated in 1983. A series of actions were taken to approve the transfer of control for these franchise agreements to various entities as the telecommunications companies were purchased or as mergers were completed. The transfer of control of both franchise agreements to Adelphia was approved by the City of Moorpark between November 21, 1990 and August 18, 1999. A chronological history of these actions by the City of Moorpark is attached to provide a clear understanding of the evolution of the Cable TV systems ownership in Moorpark. In June 2000, the City retained the services of Telecommunications Management Corporation to provide consulting services for the development and negotiation of the franchise renewal and for the development of a revised Cable Television Regulatory Ordinance. 000003 Honorable City Council April 12, 2004 Page 2 In December 2001, the franchise agreements with Adelphia were renewed for a six -month period ending June 30, 2002. No additional interim extensions have been requested or granted. Since that expiration Adelphia has continued to adhere to the operational requirements of the non - extended franchise agreement. The City and Adelphia have been more or less engaged in franchise renewal discussions since that time with interruptions caused chiefly by the filing for Chapter 11 Bankruptcy by Adelphia in June 2002. Various staffing changes at all levels of the reorganized Adelphia following the bankruptcy also served to disrupt and delay the renewal process. DISCUSSION: In March 2001, staff prepared a Draft Franchise Agreement combining both franchises. Several drafts of the Franchise Agreement have been exchanged with Adelphia since April 2003. On April 12, 2004 staff met with Adelphia representatives to resume negotiations and made very good progress toward concluding a new agreement. Adelphia has requested that the City approve an additional interim extension to the existing franchise agreements which actually expired on June 30, 2002. With the expectation that successful negotiations will be concluded before June 30, 2004, staff recommends that the existing agreements be extended until June 30, 2004. STAFF RECOMMENDATION: Adopt Resolutions No. 2004- and No. 2004- extending Cable Television Franchise Agreements with Adelphia until June 30, 2004. Attachments: Resolutions No. 2004- and No. 2004- 000004 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA APPROVING THE EXTENSION OF THE FRANCHISE TERM OF THE MOORPARK CABLE TELEVISION SYSTEM WITH ADELPHIA COMMUNICATIONS CORPORATION PENDING COMPLETION OF NEGOTIATIONS FOR A FRANCHISE RENEWAL WHEREAS, Adelphia Communications Corporation, (hereinafter "Franchisee ") is the duly authorized holder of a franchise ( "Franchise ") that authorizes the operation and maintenance of the Moorpark Cable Television System within the City of Moorpark, California( "the City "); and WHEREAS, the City's Franchise with Franchisee was granted on June 6, 1984, extended on December 19, 2001 and expired on June 30, 2002; and WHEREAS, Section 626 of the Federal Cable Communications Policy Act of 1984 (47 U.S.0 546) (the "1984 Cable Act "), establishes provisions concerning the renewal of cable television franchises by franchise authorities; and WHEREAS, the City and the Franchisee are in the process of implementing the "informal" renewal procedures permitted by the 1984 Cable Act; and WHEREAS, the City and the Franchisee mutually agree that they have been unable to complete renewal negotiations before June 30, 2002; and WHEREAS, it is considered to be in the best interests of the City, the Franchisee, and cable system subscribers to extend the Franchise term pending completion of the renewal negotiations. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Fifteen -year (15) year franchise which began November 21, 1990 by and between the City and Franchisee and its predecessors, as amended (hereinafter collectively referred to as the "Franchise "), is hereby further amended to extend its term for a period of two (2) months and nine (9) days, such that, as extended, the Franchise will expire on June 30, 2004. However, should the 000005 Resolution No. 2004 - Page 2 City and the Franchisee successfully complete renewal negotiations resulting in a new franchise, approved by the City Council, prior to the expiration of the renewal term specified herein, the original Franchise shall expire and the new franchise become effective on the date specified in the new franchise agreement. SECTION 2. Except as amended by the extension of term, all existing terms and conditions established by the Franchise shall remain in full force and effect and the City and the Franchisee agree that this Resolution integrates all of the terms and conditions mentioned herein or incidental with the Franchise. SECTION 3. Neither the City nor the Franchisee waive or alter any rights of renewal of the franchise, or rights to deny renewal of the franchise, either party may have in law, including, but not limited to the 1984 Cable Act. SECTION 4. The City Clerk is directed to transmit a certified copy of this Resolution to Adelphia Communications Corporation, 1 North Main Street, Coudersport, Pennsylvania, 16915 -1141. SECTION 5. The City Clerk shall certify to the adoption of this resolution and to cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 21St day of April, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 11111. RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA APPROVING THE EXTENSION OF THE FRANCHISE TERM OF THE MOUNTAIN MEADOWS CABLE TELEVISION SYSTEM WITH ADELPHIA COMMUNICATIONS CORPORATION PENDING COMPLETION OF NEGOTIATIONS FOR A FRANCHISE RENEWAL WHEREAS, Adelphia Communications Corporation, (hereinafter "Franchisee ") is the duly authorized holder of a franchise ( "Franchise ") that authorizes the operation and maintenance of the Mountain Meadows Cable Television System within the City of Moorpark, California( "the City "); and WHEREAS, the City's Franchise with Franchisee was granted on June 6, 1984, extended on December 19, 2001 and expired on June 30, 2002; and WHEREAS, Section 626 of the Federal Cable Communications Policy Act of 1984 (47 U.S.0 546) (the "1984 Cable Act "), establishes provisions concerning the renewal of cable television franchises by franchise authorities; and WHEREAS, the City and the Franchisee are in the process of implementing the "informal" renewal procedures permitted by the 1984 Cable Act; and WHEREAS, the City and the Franchisee mutually agree that they have been unable to complete renewal negotiations before June 30, 2002; and WHEREAS, it is considered to be in the best interests of the City, the Franchisee, and cable system subscribers to extend the Franchise term pending completion of the renewal negotiations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Fifteen -year (15) year franchise which began June 6, 1984 by and between the City and Franchisee and its predecessors, as amended (hereinafter collectively referred to as the "Franchise "), is hereby further amended to extend its term for a period of two (2) months and nine (9) days, such that, as extended, the Franchise will expire on June 30, 2004. However, should the City and the 000007 Resolution No. 2004 - Page 2 Franchisee successfully complete renewal negotiations resulting in a new franchise, approved by the City Council, prior to the expiration of the renewal term specified herein, the original Franchise shall expire and the new franchise become effective on the date specified in the new franchise agreement. SECTION 2. Except as amended by the extension of term, all existing terms and conditions established by the Franchise shall remain in full force and effect and the City and the Franchisee agree that this Resolution integrates all of the terms and conditions mentioned herein or incidental with the Franchise. SECTION 3. Neither the City nor the Franchisee waive or alter any rights of renewal of the franchise, or rights to deny renewal of the franchise, either party may have in law, including, but not limited to the 1984 Cable Act. SECTION 4. The City Clerk is directed to transmit a certified copy of this Resolution to Adelphia Communications Corporation, 1 North Main Street, Coudersport, Pennsylvania, 16915 -1141. SECTION 5. The City Clerk shall certify to the adoption of this resolution and to cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 21st day of April, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk X11111: Adelphia April 14, 2004 Mr. Patrick Hunter, Mayor City of Moorpark 799 Moorpark Ave Moorpark, CA 93021 Honorable Mayor Hunter, ITEM 9 • t3- RECEIVED APR 1 9 2004 CITY CLERK'S DEPARTMENT CITY OF MOORPARK I wanted to take a moment to personally apologize to you directly for not being in attendance on April 7th at the City Council meeting. Hugh Riley contacted me on April 9th and informed me that although Adelphia had been on the April 7th Council meeting agenda no Adelphia representation attended the meeting. Although there is no excuse for my absence at that meeting, I wanted to clarify why I had in fact missed the meeting. I had received a message from our Regional Government Affairs Manager, Patricia Fregoso -Cox that the tentative date for Adelphia to be placed on the Councils consent calendar regarding our request for a franchise extension had been rescheduled from April 7th to April 21st. I drew the conclusion that all of the issues regarding Adelphia had been rescheduled to the April 21st date, including my invitation to address the Council members on the current status of our current rebuild project. As Mr. Riley so succinctly put it, we should have called to verify. There are several operational issues including the system rebuild, digital repackaging, rate adjustments and new product launches that I look forward to discussing with you and the Council. I plan to attend the April 21st Council meeting, but would also like to extend an offer to meet with you prior to or after that date to discuss any pressing cable related issues or concerns. Please feel free to contact my administrative assistant, Amanda Needham at (805) 485 -3888 if you would like to schedule an appointment at a time that is convenient for you. Once again, my sincere apology to you, your Council and the Staff for any inconvenience I may have caused. I look forward to addressing you and the Council next week. Sincerely, Steve Naber General Manager Ventura County Operations cc: Hugh Riley City Councilmembers 721 Maulhardt Avenue Oxnard, CA 93030 Phone 805/485 -3888 f f Fax 805/485 -6710