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HomeMy WebLinkAboutAGENDA REPORT 2005 0907 CC REG ITEM 10GMOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council G- diyy OF MOORPARKy CALIFORNIA City Council Meeting of l - % - 07005' yto FROM: Hugh R. Riley, Assistant City Manage DATE: August 31, 2005 (CC Meeting of 9/07/05) SUBJECT: Consider Resolution Delegating Denial Authority to the City Manager Concerning Requests for the Transfer of Cable Television System Franchise Responsibilities to Time Warner DISCUSSION 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. Assuming the 120- day review time period is in effect, the deadline for completion of the City's review of the Transfer Requests will be October 12, 2005. The City's consultant assisting with the review process is also completing a Franchise Fee Audit of Adelphia's Cable TV operations in Moorpark for the past several years. Because the results of this fee audit may not be available prior to the October 12 deadline, it may be necessary for the City to initially deny the request for transfer due to insufficient information or to adopt a Resolution giving only conditional approval. Depending on the circumstances concerning the Adelphia -Time Warner Transfer Transactions review by the U.S. Bankruptcy Court as the deadline for action draws near, it may become necessary for the City to deny the requests. 000257 Honorable City Council September 7, 2005 Page 2 The purpose of the attached flexibility to the City applications by delegating tl Council to the City Manager. STAFF RECOMONDATION Resolution is to in dealing with e denial authority Adopt Resolution No. 2005 - Attachment: Resolution No. 2005- provide timing the transfer from the City 000258 RESOLUTION NO. 2005 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA DELEGATING AUTHORITY TO THE CITY MANAGER TO REJECT ONE OR MORE FCC FORMS 394 RELATING TO THE TRANSFER OF THE CABLE TELEVISION FRANCHISE, AND /OR CONTROL THEROF, TO AN ENTITY CONTROLLED BY TIME WARNER CABLE OR COMCAST CORPORATION WHEREAS, the City of Moorpark has received one or more FCC Forms 394 (collectively, the "Application ") requesting consent of the City Council to the assignment of the Cable Television Franchise granted to Adelphia (the "franchisee "), or control thereof, to an entity ultimately controlled by Time Warner Cable or Comcast Corporation; and WHEREAS, the City Council of the City has determined that the public interest is served by delegating to the City Manager, or said individual designated by the City Manager in writing, the authority to deny and reject the Application without prejudice for certain reasons and upon certain grounds. NOW, THEREFORE, the City Council of the City of Moorpark does herby resolve as follows: SECTION 1. The City Manager, or his /her written designee, is hereby delegated the authority to reject the Application, or any portion thereof, without prejudice for one or more of the following reasons: 1. Failure to timely provide any "additional information required by the terms of the Franchise Agreement or applicable state or local law "; 2. Failure to timely provide any other requested additional information; 3. Failure on the part of the Applicant to cooperate with Staff, its attorneys and consultants, in performing due diligence relating to the Application, the legal, technical, and financial qualifications of the proposed Transferee and /or the impact of the transaction upon cable television rates and /or services; 000259 4. Failure to timely cure any outstanding breach of franchise prior to or as an express condition of approval of the transaction in a manner acceptable to the City Manager; 5. Failure to timely execute and deliver a Transfer Agreement acceptable as to form and substance by the City Manager; and 6. Filing mutually inconsistent FCC Forms 394 providing for potentially different Transferees. SECTION 2. The decision of the City Manager, pursuant to the authority delegated and provided by this Resolution, shall be made in writing and shall be deemed, without further action of the City Council, to constitute an act of the Franchising Authority within the meaning of 47 C.F.R. § 76.502 and a "final decision" of the City Council within the meaning of § 617(e) of the Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 103 -385, 106 Stat. 1477 (1992) . SECTION 3. Any denial, disapproval, or rejection issued pursuant to the authority of this Resolution shall be deemed ""without prejudice" to the ability of the Applicant to file another FCC Form 394 relating to the same or a different transaction. However, nothing herein shall limit the authority of the City Council, the City Manager, or his /her written designee, to reject any subsequent FCC Form 394 based upon the same grounds set forth in the written notice of denial or such other grounds as might exist in relation to said future FCC Form 394. 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 7th day of September, 2005. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 000260