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HomeMy WebLinkAboutAGENDA REPORT 2005 0706 CC REG ITEM 09CITEM q.C. WENNNEMMMW CITY OF MOORPARK, CALIFORNIA City Council Meeting of _ _ _ _ _ 7-61-0?00,5 ACTION: d.�d met MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Hugh R. Riley, Assistant City Manager DATE: June 21, 2005 (CC Meeting of 7/06/05) SUBJECT: Consider Approval of the Agreement for Professional Consulting Services with Telecommunications Management Corporation to Review Requests for the Transfer of Cable Television System Franchise Responsibilities to Time Warner and to Conduct Franchise Compliance and Fee Audits and Adopt Resolution No. 2005 -_ to Amend the City's Operating Budget for Fiscal Year 2005 -06 BACKGROUND As anticipated, on June 14, 2005, the City of Moorpark received requests from Time Warner Cable Inc. for the transfer of Cable TV franchise responsibilities for the Moorpark Systems currently operated by Adelphia. The sale of Adelphia's Southern California Cable Systems is a result of Adelphia's bankruptcy filed in June 2002. Federal Communications Commission Regulations allow the City 30 days in which to determine and declare if the requesting documents (FCC Form 394) are complete and 120 days to complete its review of the request and other associated activity and approve or deny the request. DISCUSSION The cable TV systems serving the City of Moorpark are operated by Adelphia Communications. Currently, Adelphia owns 75% of the Moorpark Systems and is the Franchise Grantee. Comcast Corporation owns 250 of the Moorpark Systems. The City completed a 15 -year Franchise Agreement with Adelphia in October 1, 2004. 000054 Honorable City Council July 6, 2005 Page 2 Staff recommends that, in addition to the review of the transfer request documents, the City conduct an audit of Adelphia franchise compliance and franchise fee records. To assist with this work, staff recommends that a consultant with experience in the cable TV franchise renewal and transfer process be retained. The County of Ventura, and the Cities of Simi Valley, Oxnard and Port Hueneme are processing similar transfer requests and have agreed to retain the same consultant, Telecommunications Management Corporation (TMC), to review FCC Forms 394 and conduct compliance and fee audits. The City of Moorpark retained TMC to assist with its franchise renewal process. In view of the opportunity for multiple clients with similar tasks, TMC has agreed to offer their services at a reduced rate. Staff has obtained separate proposals from TMC for the transfer document review and for the franchise fee audit. The proposals include the following tasks: TRANSFER REQUEST REVIEW & COMPLIANCE AUDIT Task A. Determine as to whether the Forms 394 are complete, or whether additional information is required. Task B. Determine, in conjunction with City staff, as to whether the current franchisee is in compliance with its franchise obligations. Task C. Determine whether the ultimate transferee (a new Time Warner entity), agrees to comply with the requirements of the existing franchise, or wishes to change any of the franchise terms. Task D. Determine whether the transferee is legally, financially and technically qualified to operate the cable system. This will include a review of the financial statements of the new entity that is being established to own and operate these cable systems. Task E. Assess what impact the transfer may have on cable subscribers, and the City (e.g., the potential impact on subscriber rates, quality of service or degree of competition in the community). 000055 Honorable City Council July 6, 2005 Page 3 Task F. Recommend what conditions, if any, the City legitimately can impose upon the transfer. FRANCHISE FEE AUDIT Task A. A review of the revenue records of the cable operator for the most recent four years (2001 *, 2002, 2003, 2004, and if available, the first quarter of 2005) including the sources of all revenue components. This will include revenue, such as commissions paid by the home shopping channels, which may be paid to the corporate offices or to an affiliate rather than directly to the local cable system. ( *last three quarters only.) Task B. A review of the method utilized by the operator to compute franchise fees due to the City, including all revenue elements included in the computation. A detailed analysis will be made of any revenues excluded from the computation, and whether these exclusions are in compliance with franchise requirements and cable industry practices. Task C. A comparison of the computed franchise fees due with actual payments made to the City, to verify that all fees have been paid. The fees for the services rendered shall be $4,900 for Tasks A through F and $9,600 for conducting a Franchise Fee Audit. The City's Ordinance regulating Cable Television requires Time Warner to reimburse the City for all reasonable expenses incurred to review the transfer request. A deposit of $6,000 was submitted by Time Warner with the Transfer Request. The costs for the Transfer review and compliance audit will be paid from the application deposit. Cost to conduct the fee audit may be reimbursable if the audit results in findings that there has been more than a 20 error in the fee payments over the period covered by the audit. A budget amendment for the franchise fee audit ($9,600) is required as this work was not included in the current operating budget. It is proposed to come from the General Fund Reserve. Staff has prepared an Agreement for Professional Consulting Services with TMC that is attached to this report. The Agreement includes a scope of services based on TMC's June 20, and June 22, 2005 Proposals. A brief chronological history of the cable system franchise actions is also attached. 000056 Honorable City Council July 6, 2005 Page 4 STAFF RECObMNDATION (ROLL CALL VOTE) 1. Approve Agreement for Professional Consulting Services with Telecommunications Management Corporation and authorize the City Manager to sign on behalf of the City subject to final language approval by the City Manager and City Attorney. 2. Adopt Resolution No. 2005 - Amending the 2005 -06 Operating Budget. Attachment: 1. Agreement for Professional Consulting Services 2. Chronological History of Cable TV Actions 3. Resolution No. 2005- 000057 AGREEMENT FOR PROFESSIONAL SERVICES Between CITY OF MOORPARK and TELECOMMUNICATIONS MANAGEMENT CORPORATION for CONSULTING SERVICES This Agreement, made and entered into this day of July, 2005 between the CITY OF MOORPARK, a municipal corporation, hereinafter referred to as "City" and Telecommunications Management Corporation, a California Corporation, hereinafter referred to as "Consultant ". WITNESSETH: WHEREAS, City has determined that it requires professional consulting services to conduct a review of Federal Communications Commission (FCC) Forms 394 for the transfer of the Adelphia /Comcast Cable Franchise to a Time Warner Communications Entity. And to conduct and Audit of Franchise Fee Revenues; and WHEREAS, Consultant has submitted a proposal to provide said services indicating he has the proper experience and background to provide the needed services; and WHEREAS, City wishes to retain Consultant for the performance of said services; NOW, THEREFORE, in consideration of the mutual covenants, benefits and premises herein stated, the parties hereto agree as follows: I. Scope of Services City does hereby retain Telecommunications Management Corporation, Inc. (TMC) in a contractual capacity to provide the services required in accordance with the terms and conditions hereinafter set forth in Exhibit "A" attached hereto and made a part hereof. And more specifically referred to as the following tasks: TRANSFER REVIEW AND COMPLIANCE AUDIT The scope of work for the review of the Transfer Request (FCC Form 394s And the Franchise Compliance Audit shall include the following: Task A. Determine if the Forms 394 are complete or whether additional information is required. ATTACHMENT1 Page 1 Task B. Determine, in conjunction with City staff, as to whether the current franchisee is in compliance with its franchise obligations. Task C. Determine whether the ultimate transferee (a new Time Warner entity), agrees to comply with the requirements of the existing franchise, or wishes to change any of the franchise terms Task D. Determine whether the transferee is legally, financially and technically qualified to operate the cable system. This will include a review of the financial statements of the new entity that is being established to own and operate these cable systems. Task E. Assess what impact the transfer may have on cable subscribers, and the City (e.g., the potential impact on subscriber rates, quality of service or degree of competition in the community) . Task F. Recommend what conditions, if any, the City legitimately can impose upon the transfer. FRANCHISE FEE AUDIT The scope of the franchise fee audit shall include the following: Task A. Review of the revenue records of the cable operator for the most recent four years (the last three quarters of 2001, 2002, 2003, 2004, and if available, the first quarter of 2005) including the sources of all revenue components. This will include revenue, such as commissions paid by the home shopping channels, which may be paid to the corporate offices or to an affiliate rather than directly to the local cable system. Task B. Review of the method utilized by the operator to compute franchise fees due to the City, including all revenue elements included in the computation. A detailed analysis will be made of any revenues excluded from the computation, and whether these exclusions are in compliance with franchise requirements and cable industry practices. Task C. Prepare a comparison of the computed franchise fees due with actual payments made to the City, to verify that all fees have been paid. Page 2 000059 The interpretation of the services to be provided pursuant to this Agreement shall be made in accordance with the following priority of listing: 1. This Agreement 2. Exhibits A & B - The Proposals Submitted by Consultant. II. Compensation The fees in full compensation to Consultant for the services rendered shall be $4,900 for the Transfer Review and Compliance Audit (Tasks A through F). The Fees for the Franchise Fee Audit shall be $ 9,600. Additional services beyond the above described Scope of Work shall be billed to the City at the following rates: Carl Pilnick - $225.00 / hr. Michael Friedman - $185.00 / hr. Payment to Consultant shall be made by City within thirty (30) days of receipt of invoice indicating the project and nature of the work performed, except for those which are contested or questioned and returned by City, with written explanation within thirty (30) days of receipt of invoice. Consultant shall provide to City a written response to any invoice contested or questioned and further, upon request of City, provide City with any and all documents related to any invoice. Ten percent (loo) of all invoices shall be held as retention and paid upon successful completion of the Scope of Services and delivery to the City. III. Termination A. This agreement may be terminated with or without cause by Consultant at any time with no less than thirty (30) calendar days written notice of such termination to City. This agreement may be terminated with or without cause by City at any time with no less than ten (10) calendar days written notice of such termination to Consultant. B. In the event of such termination, Consultant shall be compensated for such services up to the date of termination. Such compensation for work in progress shall be limited to actual services performed as of the date of termination. Consultant shall provide to City all materials, reports and files related to the work performed and being performed upon termination. Page 3 1111.1, IV. Term The term of this Agreement shall be for a period commencing on July 6, 2005 and continuing through June 30, 2006, unless sooner terminated as herein provided. This Agreement may be extended by mutual consent of the parties hereto. V. General Conditions A. City shall not be called upon to assume any liability for the direct payment of any salary, wage or other compensation to any person employed by Consultant performing services hereunder for City. B. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, servants or agents shall have control over the conduct of Consultant or any of its officers, employees or agents, except as herein set forth. Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner employees of City. C. At the time of 1) termination of this Agreement, or 2) conclusion of all work, all original documents, drawings, reports, calculations, computer files, notes, and other related materials whether prepared by Consultant or its subcontractor(s) or obtained in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City. D. Consultant shall hold harmless, indemnify and defend the City and its officers, employees, servants and agents and independent contractors from a claim, demand, damage, liability, loss, cost or expense, for any damage whatsoever, including but not limited to death or injury to any person and injury to any property, resulting from, or in any way connected with the performance of this Agreement by Consultant or the City, except such damage as is caused by the sole negligence of the City. The City does not, and shall not, waive any rights that it may have against Consultant by reason of Paragraph D. hereof, because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, damage, Page 4 000061 liability, loss, cost or expense described in Paragraph D. hereof. E. Consultant shall secure from a good and responsible company or companies doing insurance business in the State of California, pay for, and maintain in full force and effect for the duration of this Agreement the policies of insurance required by this paragraph and shall furnish to the City Clerk of the City certificates of said insurance on or before the commencement of the term of this Agreement. Notwithstanding any inconsistent statement in any of said policies or any subsequent endorsement attached thereto, the protection offered by the policies shall: 1. Name the City and its officers, employees, servants and agents and independent contractors as additional insured with Consultant. 2. Bear an endorsement or have attached a rider whereby it is provided that, in the event of cancellation or amendment of such policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation of amendment is effective. Consultant shall give City thirty (30) days written notice prior to the expiration of such policy. 3. Be written on an occurrence basis. F. Consistent with the provisions of Paragraph E., Consultant shall provide general liability and professional liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence. Automobile bodily injury and property damage insurance shall be maintained by Consultant in amounts not less than $100,000 bodily injury per person; $300,000 bodily injury per accident; and property damage of $100,000 per accident. At such point in time that Consultant obtains and provides any of the above insurance with coverage limits in excess of the amounts specified above to another Consultant client, Consultant shall immediately provide these same coverage limits to City. G. Consistent with the provisions of Paragraph E., Consultant shall provide workers' compensation insurance as required by the California Labor Code. Page 5 000062 If any class of employees engaged by Consultant in work under this Agreement is not protected by the workers' compensation law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. H. Consultant shall not assign this agreement or any of the rights, duties or obligations hereunder. It is understood and acknowledged by the parties that Consultant is uniquely qualified to perform the services provided for in this agreement. I. Any notice to be given pursuant to this agreement shall be in writing, and all such notices and any other document to be delivered, shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: City: City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Attn: City Manager Consultant: Carl Pilnick, President Telecommunications Management Corp. 5757 Wilshire Blvd., Suite 635 Los Angeles, California 90036 Either party may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or upon deposit in the United States mail. J. Nothing contained in this agreement shall be deemed, construed or represented by City or Consultant or by any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between City and Consultant. K. This agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, is hereby merged herein. This agreement shall not be amended in any way except by a written amendment Page 6 0000613 expressly purported to be such an amendment, signed and acknowledged by both parties hereto. L. Should interpretation of this agreement, or any portion thereof, be necessary, it is deemed that this agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that a party prepared the agreement or caused it to be prepared. M. No waiver of any provision of this agreement shall be deemed, or shall constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless executed in writing by the party making the waiver. N. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this agreement or as a result of any alleged breach of any provision of this agreement, the prevailing party shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. O. Cases involving a dispute between City and Consultant may be decided by an arbitrator, if both sides agree in writing on the arbitration and on the arbitrator selected, with costs proportional to the judgment of the arbitrator. P. This agreement is made, entered into, executed in Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforcement or other action to herein shall be filed in the applicable court in Ventura County, California. Q. The captions and headings of the various Articles and Paragraphs of this agreement are for convenience and identification only and shall not be deemed to limit or define the content of the respective Articles and Paragraphs hereof. R. If any portion of this agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will never - the -less continue in full force without being impaired or invalidated in any way. Page 7 1111.• S. No officer, employee, director or agent of the City shall participate in any decision relating to this Agreement which affects his personal interest or the interest of any corporation, partnership, or association in which he is directly or indirectly interested, or shall any such person have any interest, direct or indirect, in this Agreement or the provisions thereof. T. Consultant agrees not to work for any private firm located within the City limits or its Area of Interest, or for any public agency where its jurisdiction includes all or part of the City without the prior written consent of the City, during the term of this Agreement. Further, Consultant agrees to limit its actions related to economic interest and potential or real conflicts of interest as such are defined by applicable State law to the same standards and requirements for designated City employees. U. The individual directly responsible for Consultant's overall performance of the contract provisions herein above set forth and to serve as principal liaison between City and Consultant shall be Carl Pilnick. This individual may not be substituted without the prior written approval of the City. The individual directly responsible for the City shall be the City Manager or his designee. V. The language contained in this Agreement shall take precedence over the language contained in any exhibit to this Agreement. Page 8 VI. Effective Date This Agreement shall be effective on July 6, 2005. Signed and Approved by: CITY OF MOORPARK Steven Kueny, City Manager ATTEST: Deborah S. Traffenstedt, City Clerk CONSULTANT Carl Pilnick, President Exhibit A: TMC Proposal for Transfer Document Review and Franchise Compliance Audit dated June 20, 2005 Exhibit B: TMC Proposal for Franchise Fee Audit dated June 22, 2005 Page 9 1111.. INTEROFFICE MEMORANDUM TO: FRANCHISING AUTHORITIES SERVED BY ADELPHIA OR COMCAST FROM: TELECOMMUNICATIONS MANAGEMENT CORP. SUBJECT: PROPOSAL TO REVIEW FCC FORM 394 DATE: JUNE 20, 2005 Many Telecommunications Management Corp. (TMC) clients in Southern California are served by cable providers affiliated with Adelphia, Comcast or Time Warner. With the pending transfer of the cable franchises from Adelphia and Comcast to Time Warner, it is our understanding that a number of local franchising authorities may be interested in utilizing consultant assistance to review the Federal Communications Commission (FCC) Form 394 for the transfer of the cable franchise to a Time Warner Communications entity. Telecommunications Management Corp. (TMC) is pleased to present this proposal for your consideration. Apart from TMC's extensive cable experience in serving approximately 400 municipalities, we have performed numerous franchise transfer evaluations. TMC proposes the following scope of work: • A determination as to whether the Forms 394 are complete, or whether additional information is required. • A determination, in conjunction with City staff, as to whether the current franchisee (Adelphia or Comcast) is in compliance with its franchise obligations. • Whether the ultimate transferee (a new Time Warner entity), agrees to comply with the requirements of the existing franchise, or wishes to change any of the franchise terms. • Whether the transferee is legally, financially and technically qualified to operate the cable system. This will include a review of the financial statements of the new entity that is being established to own and operate these cable systems. EXHIBIT A 000067 TMC - PROPOSAL TO REVIEW FCC FORM 394 JUNE 20, 2005 PAGE 2 What impact the transfer may have on cable subscribers, and the City (e.g., the potential impact on subscriber rates, quality of service or degree of competition in the community). • What conditions, if any, the City legitimately can impose upon the transfer. It should be noted that some local franchising authorities also may desire to review such issues as a franchise compliance audit and /or a franchise fee audit of the cable operator's operations in your franchise area. TMC will be pleased to propose a scope of work and associated costs for any tasks desired by the City. Some tasks, such as a due diligence review of the proposed transferee, may involve other communities with similar interests, and result in a potential cost savings. The cost of the transfer evaluation will be $4,900 per FCC Form 394' on a firm, fixed -price basis. This includes one meeting to review the report findings. Additional meetings will be invoiced at TMC's hourly rate of $225 for Mr. Carl Pilnick and $185 for Mr. Michael J. Friedman. It is noted that many franchises require cable operator reimbursement of transfer expenses. The transfer evaluation report will be delivered within 45 days of receipt of a copy of the completed FCC Form 394 and authorization to proceed. For additional information contact: Telecommunications Management Corp. 5757 Wilshire Blvd., Suite 635 Los Angeles, CA 90036 (323) 931 -2600 Carl Pilnick, pilnick @telecom - mgmt.com Michael J. Friedman, fdedman @telecom - mgmt.com We look forward to your response. ' For those franchise authorities served by systems operated under the Century-TCI California, LP, two Forms 394 have been submitted. In a series of transfers (and in a broad description), Adelphia will transfer its 75% ownership to Comcast; Comcast then will transfer the ownership to a new entity [CAC Exchange I, LLC]; the new entity then will be transferred to Time Warner. The series of transfers are projected to be "completed contemporaneously and in direct succession." Even though multiple Forms 394 are included in this process, TMC anticipates that all reviews will be provided in one report for the same $4,900 fee. 1111.: TELECOMMUNICATIONS MANAGEMENT CORP. 5757 MOW Blvd. • Suite 835 • Los Angeles, CA 90036 . (323) 931 -2600 . Fax (323) 931.7355 June 22, 2005 Mr. Hugh Riley Assistant City Manager City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Dear Mr. Riley: In response to your request, Telecommunications Management Corp_ (TMC) is pleased to submit to the City of Moorpark this proposal to perform an audit of the cable system franchise fees computed and paid to the City by the City's cable system operator, Adelphia Communications. The scope of the audit shall include the following: • A review of the revenue records of the cable operator for the most recent four years (the last three quarters of 2001, calendar 2002, 2003 and 2004 and; if available, the first quarter of 2005) including the sources of all revenue components. This will include revenue, such as commissions paid by the home shopping channels, which may be paid to the corporate offices or to an affiliate rather than directly to the local cable system. • A review of the method utilized by the operator to compute franchise fees due to the City, including all revenue elements included in the computation. A detailed analysis will be made of any revenues excluded from the computation, and whether these exclusions are in compliance with franchise requirements and cable industry practices. • A comparison of the computed franchise fees due with actual payments made to the City, to verify that all fees have been paid. In the event of any discrepancies, an estimate of the underpayments will be made. EXHIBIT B 000069 Jun -22 -05 12:54P Telecom_ Mgmt_ Corp_ 323 931 7355 P_03 Mr. Hugh Riley City of Moorpark June 22, 2005 Page 2 The end - result of the review and audit shall be a written report detailing all findings, along with estimates of incorrect payments, to the extent any are found, and recommendations for future financial reports and procedures. Three (3) bound copies and one (1) unbound (reproducible copy) are included in the cost quoted below. The audit report shall be submitted to the City within forty -five (45) days of receipt of all information requested from Adelphia. The cost shall be $9,600 on a firm, fixed -price basis. The cost includes up to two (2) meetings with City staff and officials to review the audit findings. As you may be aware, Ventura County also has requested a franchise fee audit proposal for the unincorporated area franchises. If we conduct audits for both the City and the adjoining unincorporated areas that have the same franchise fee requirements, we anticipate that we can provide a cost reduction in the range of 15 -20 %. Invoices shall be submitted in accordance with the following schedule: • 50% thirty (30) days after authorization to proceed, and • 50% upon submission of audit report. For services beyond the stated scope of work, the City will be invoiced monthly on an hourly basis at the following TMC rates: Mr. Pilnick $220 per hour Mr. Friedman $185 per hour. Figure 1 provides a summary list of the franchise fee audits TMC has performed. Thank you for the opportunity to offer our services again to the City of Moorpark, and we look forward to your response. Sincerely, Carl Pilnick President Enclosure 000070 Jun -22 -05 12:54P Telecom_ Mgmt_ Corp_ 323 931 7355 FIGURE 1 TMC FRANCHISE FEE AUDITS PERFORMED COMMUNITY San Bernardino, CA Watsonville, CA Rancho Cucamonga. CA Adams County. CC Arvada, CO Castle Rode. CO Cherry Hills Village. CO Commerce, CC Golden, CO Palm Desert. CA Half Moon Bay & San Mateo County, CA Martin County, FL El Segundo, Gardena, Hawthorne. Lawndais & Torrance, CA Long Beach. CA El Monte & South Gate, CA Rancho Cucamonga. CA Calabasas. CA Burbank, Glendale and La Canada Flintndge. CA San Mateo County Telecommunications Authority, CA Marin Telecommunications Agency. CA Dublin, Livermore. Pleasanton and San Ramon, CA Campbell. CA La Puente. CA Simi Valley. CA Whittier. CA Westlake Village. CA Pacifica, CA Beverly Hills. CA Lawndale. CA San Bernardino Co.. CA Santa Clarita, CA Santa Barbara, CA Artesia. CA Tustin, CA Cernres, CA La Palma. CA Mann Telecommunications Agency. CA Gainesville & Alachua Co.. FL Burbank & Glendale. CA Thousand Oaks. CA Simi Valley, CA Beverly Hills. CA EI Monte. CA Seal Beach. CA Canyon Lake, CA West Covina. CA Hespona, CA CABLE OPERATOR Comcast & Chambers Sonic DCA Cablevision & Simmons Cable TO TO TCI TCl TCI TO Colony Coastside Cable Adelphia Time Wamer CVI Liberty Cable Marks Cablevision CalaVision, Falcon and TCI Marcus TCI TO TCI TCI TCI Comcast Marcus/Charter AT &T /Adelphia TCI /AT&T Adelphia Time Warner 13 franchises • 7 operators AT &T & Time Warner Cox AT &T AT &T Venzon AT &T AT &T Cox Charter Adelphia Adetphis Adelphia Adelphia Adelphia Corrlcast Charter Charter DATE AUDIT COMPLETED 1991 1991 1992 1992 1992 1992 1992 1992 1992 1993 1994 low 1994 1995 1995 19% 1999 1999 1999 1999 1999 1999 1999 1999 2000 2000 2000 2000 2000 2000-2001 2001 2001 2002 2002 2002 2002 2002 2003 2003 2003 2003 2003 2003 2004 2004 2004 2004 P_04 000071. CHRONOLOGICAL HISTORY OF CABLE TELEVISION FRANCHISE ACTIONS CITY OF MOORPARK 6/6/84 — Resolution No. 84 -99: Granting 15 -year Cable TV Franchise to Mountain Meadows Cable Television, L.P., ( "Mountain Meadows System "). This Franchise expires on June 5, 1999. 11/21/90 —Ordinance No. 133 11/21/90 — Ordinance No. 134: 3/20/96 — Resolution No. 96 -1190: Cable TV Franchise Ordinance, now Chapter 5.06 of City Code. Granting Cable TV Franchise renewal to The Chronical Publishing Co. dba Ventura County Cable Vision ( "VCC ") ( "Moorpark System "). This Franchise was in place at the time the City was incorporated. This Franchise expires on November 8, 2000. Approving transfer of Ownership of Moorpark System to Telecommunications, Inc. ( "TCI ") Cable Vision of California. 12/2/98 — Resolution No. 98 -1550: Extending Franchise held by Entertainment Express (formerly Mountain Meadows Cable Television) Mountain Meadows System to December 20, 2000. 1/20/99 — Resolution No. 99 -1565 2/5/99 — Resolution No. 99 -1574: Clarifying Mountain Meadows System and repealing Resolution No. 98 -1550. Approving Change of Control of Moorpark System where TCI becomes wholly owned subsidiary of AT &T. ATTACHMENT 2 0000'72 5/19/99 — Resolution No. 99 -1611: Approving transfer of Moorpark System from TCI of California to Century-TCI California, L.P. 8/18/99 — Resolution No. 99 -1648: Approving change of control of Mountain Meadows System to Adelphia Communications Corporation ( "Adelphia ") 8/18/99 — Resolution No. 99 -1643 7/18/01- Resolution Nos. 2001 -1869 & 2001 -1870 6/21/02 5/13/04- Resolution Nos. 2004 -2178 & 2004 -2179 7/21/04- Resolution Nos. 2004 -2222 & 2004 -2223 9/1/04- City Ordinance No. 303, Amending Chapter 5.06 Municipal Code. 10/1/04 Approving change of control of Moorpark System to Adelphia Communications Corporation. Extending the Mountain Meadows System and the Moorpark System Franchises to December 31, 2001 Adelphia files for Bankruptcy under Chapter 11 Extending the Mountain Meadows System and the Moorpark System Franchises to June 30, 2004 Extending the Mountain Meadows System and the Moorpark System Franchises to September 30, 2004 Cable Regulatory Ordinance City - Adelphia complete 15 -Year Franchise Agreement 4/1/05 Adelphia announces pending sale of CA System Assete to Time Warner 000073 RESOLUTION NO. 2005 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FY 2005/2006 BUDGET TO ALLOCATE FUNDS FOR A CABLE FRANCHISE FEE AUDIT WHEREAS, on June 15, 2005, the City Council adopted the budget for Fiscal Year 2005/2006; and WHEREAS, Adelphia Communications will be selling its cable franchise; and WHEREAS, it is recommended that a Franchise Fee Audit be performed prior to the sale of the franchise; and WHEREAS, on July 6, 2005, the City Council approved an agreement with Telecommunications Management Corporation for completing a Franchise Fee Audit; and WHEREAS, a budget amendment is required to fund this work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That a budget amendment in the amount of $10,000 from the General Fund, as described in Exhibit "A" attached hereto, is hereby approved. SECTION 2. 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 6th day of July, 2005. ATTEST: Deborah S. Traffenstedt, City Clerk Attachment: Exhibit "A" Patrick Hunter, Mayor ATTACHMENT, 000074 EXHIBIT A BUDGET AMENDMENT FOR GENERALFUND FY 2005 -06 FUND ALLOCATION FROM: Fund Account Number Amount General Fund 1000 -5500 $ 10,000.00 $ 10,000.0-0 $ 10, 000.00 Total $ 10,000.00 DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS: Account Number Current Budget Revision Amended Budget 1000.2120.0000.9103 $ 10,000.0-0 $ 10, 000.00 Total $ - $ 10,000.00 $ 10,000.00 Approved as to Form: 0000'75