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HomeMy WebLinkAbout12/7/2005 - STAFF REPORTS (18) F?ALM S.0 w �2 w I <,FORN�P City Council Staff Report DATE: December 7, 2005 CONSENT CALENDAR SUBJECT: APPROVE AN EXTENSION OF THE CABLE TELEVISION FRANCHISE AGREEMENT WITH TIME WARNER THROUGH DECEMBER 31, 2006 FROM: David H. Ready, City Manager BY: Assistant City Manager—Administrative Services SUMMARY The City has heretofore entered into two separate franchise agreements for cable television services. These agreements, which cover two separate areas of the City, were both for 17 year terms expiring in late 2004 and early 2005, respectfully. The cable operator, Time Warner, has filed timely notice of its intent to renew both franchise agreements pursuant to Federal law. In light of this notice, the City Council agreed to extend both agreements through December 31, 2005 to facilitate the renewal process and to negotiate a new agreement with the cable operator. Although the City, through its cable consultant, the Buske Group, has been working diligently with the cable operator to complete the renewal process, there is insufficient time to complete this process prior to the expiration date of the current extension. Both staff and Time Warner have discussed the remaining elements of the renewal process and concur that that the franchise agreements need to be extended through December 31, 2006 to enable the parties to complete the process and finalize their negotiations. RECOMMENDATION: 1. Adopt Resolution No. Extending the Cable Television Franchise Granted to Palmer Cablevision under Agreement 2792 through December 31, 2006; and 2. Adopt Resolution No. Extending the Cable Television Franchise Granted to Warner Cable Communications under Agreement 2535 through December 31, 2006; and 3. Authorize the City Manager to sign all documents necessary to effectuate this action. STAFF ANALYSIS: On January 20, 1988, the City Council adopted Ordinance 1295 providing for the establishment and granting franchises or privileges for the construction, maintenance, and operation of a cable television system within the City. Pursuant to this Ordinance, the City City Council Staff Report December 7, 2005 -- Page 2 Extension of Cable Television Franchise Council granted a franchise agreement on or about January 20, 1988 with Warner Cable Communications. This agreement was for a 17 year term expiring January 20, 2005. On or about November 15, 1989, the City Council granted a separate franchise agreement to Palmer Cablevision. This agreement was also for a 17 year term expiring on November 15, 2004. Over the years both franchise agreements have been sold and transferred to different cable operators. In the mid-1990's, the franchises were finally consolidated under a single cable operator, Time Warner. On or about February 15, 2002, Time Warner gave formal notice to the City of its intent to renew both franchises, pursuant to the provisions of the Cable Communications Policy Act of 1984 as amended (47 U.S.C. § 546). The renewal process is governed by Federal law. Typically, the process is divided into three phases: 1) development of a timeline and education of City staff regarding the process, laws, and regulations; 2) review of the status of the current cable television system and franchise, and ascertainment of future cable television-related needs; and 3) negotiation of an agreement. Depending on the number of issues to be discussed and the ability of the parties to reach an agreement, the average franchise renewal process can take between 12 to 18 months to complete. For example, staff has heard that the City of Indio has been working on a renewal of their cable franchise for the past five years. The renewal process is both complicated and time consuming. In March 2005, the City Council authorized the retention of a cable consultant to assist staff with the renewal process. The City's cable consultant, The Buske Group, has been working diligently with Time Warner on a number of issues. The City's consultant has also meet with several stakeholder groups, including the hospitality industry, to discuss the renewal process and other cable issues. The current extension to the franchise agreements expires on December 31, 2005. Due to the amount of time it is taking to facilitate the renewal process, staff is recommending that both franchise agreements be extended through December 31, 2006. Time Warner is in agreement with this extension. Resolutions extending the term of both franchise agreements have been prepared and are attached for your consideration. Staff is cautiously optimistic that the renewal process can be completed by the end of next year. FISCAL IMPACT: IFinance Director Revie —r-� The requested action does not have a fiscal impact on the City. F \ro L. Butzla� A s'i tant City Manager David H. Ready, City M_a a. Attachments: Resolu(ions (2) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS EXTENDING THE CABLE TELEVISION FRANCHISE AGREEMENT WITH WARNER CABLE COMMUNICATIONS THROUGH DECEMBER 31, 2006 WHEREAS, the provision of cable services are a critical service for many Palm Springs residents and the public at large; and WHEREAS, provision of cable services necessitates an agreement for use of public right- or-way between the City of Palm Springs ("Grantor") and all cable providers; and WHEREAS, Grantor entered in a cable franchise agreement ("Franchise Agreement") with Warner Cable Communications ("Grantee") on or about January 20, 1988; and WHEREAS, the term of the Franchise Agreement was for a 17 year period expiring on January 20, 2005; and WHEREAS, Grantee has filed timely notice of intent to renew its Franchise Agreement with Grantor; and WHEREAS, on or about December 15, 2004, the City Council adopted Resolution No. 21159 extending the term of the Franchise Agreement through December 31, 2005 to allow the parties to complete the renewal process and to negotiate the terms and conditions of a new franchise; and WHEREAS, the renewal process can typically take between 12 to 18 months, depending on the number of issues and the ability of the parties to reach an agreement, to complete; and WHEREAS, the Grantor, through its consultant, is working diligently with the Grantee to complete the renewal process which includes a comprehensive review of the current cable television system and franchise and identification of the community's future cable television-related needs; and WHEREAS, to properly facilitate the completion of the renewal process the parties have agreed to extend the existing Franchise Agreement through December 31, 2006 or until a new Franchise Agreement is approved; and WHEREAS, the parties agree that it is in the common interest of cable customers to continue to receive cable services under the current Franchise Agreement terms until a new Franchise Agreement is approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, as follows: Section 1. Extension of the Term of the Franchise Agreement through December 31, 2006. The Grantor hereby agrees and consents to extend the current Franchise Agreement, granted to Grantee pursuant to Agreement 2535, through December 31, 2006 or until a new Franchise Agreement is approved by both parties, whichever occurs first, subject to the terms and conditions set forth below. Section 2. Terms and Conditions of Extension of the Agreement. The Grantor's consent to the extension, described above, is subject to, and conditioned upon, the following terms and conditions, all of which are hereby incorporated in the Franchise Agreement: A. All terms and conditions of the existing Franchise Agreement shall remain in full force and effect during the extension period. B. The extension shall have no adverse effect on Grantee's compliance, nor shall the extension be grounds for any change or modification in the remaining terms, conditions and obligations of the Franchise Agreement. Further, the extension of the franchise agreement will not affect, diminish, impair or supercede the binding nature of the existing ordinances, resolutions and agreements applicable to operation of the cable system. C. The Grantor's consent to extend the Franchise Agreement, as set forth herein, shall not be construed, in any manner whatsoever, to constitute a waiver or release of any rights that the Grantor may have under the Franchise Agreement, whether those rights arose before or after the change in control to Grantee and the fact that such deficiencies may have existed prior to the change in control shall not be a defense against correction of the deficiencies or non-compliance. D. Both parties hereby reserve all rights under applicable provisions of the Cable Communications Policy Act of 1984 (The "Cable Act"), including, without limitation, Sections 626 and 635. Nothing herein shall be deemed or construed as a waiver, release or surrender of any right that either party may have under the Cable Act or any applicable law. ADOPTED this day of 2005. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk City Manager REVIEWED AND ADOPTED AS TO FORM: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS EXTENDING THE CABLE TELEVISION FRANCHISE AGREEMENT WITH PALMER CABLEVISION THROUGH DECEMBER 31, 2006 WHEREAS, the provision of cable services are a critical service for many Palm Springs residents and the public at large; and WHEREAS, provision of cable services necessitates an agreement for use of public right-or- way between the City of Palm Springs ("Grantor") and all cable providers; and WHEREAS, Grantor entered in a cable franchise agreement ("Franchise Agreement') with Palmer Cablevision on or about November 15, 1989; and WHEREAS, the Franchise Agreement with Palmer Cablevision has transferred several times to different cable operators throughout the years; and WHEREAS, Time Warner("Grantee") is the current operator of the cable television franchise; and WHEREAS, Grantee has filed timely notice of intent to renew its Franchise Agreement with Grantor; and WHEREAS, on or about December 15, 2004, the City Council adopted Resolution No. 21160 extending the term of the Franchise Agreement through December 31, 2005 to allow the parties to complete the renewal process and to negotiate the terms and conditions of a new franchise; and WHEREAS, the renewal process can typically take between 12 to 18 months, depending on the number of issues and the ability of the parties to reach an agreement, to complete; and WHEREAS, the Grantor, through its consultant, is working diligently with the Grantee to complete the renewal process which includes a comprehensive review of the current cable television system and franchise and identification of the community's future cable television- related needs; and WHEREAS, to properly facilitate the completion of the renewal process the parties have agreed to extend the existing Franchise Agreement through December 31, 2006 or until a new Franchise Agreement is approved; and WHEREAS, the parties agree that it is in the common interest of cable customers to continue to receive cable services under the current Franchise Agreement terms until a new Franchise Agreement is approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, as follows: Section 1. Extension of the Term of the Franchise Agreement through December 31 2006. The Grantor hereby agrees and consents to extend the current Franchise Agreement, granted to Grantee pursuant to Agreement 2535, through December 31, 2006 or until a new Franchise Agreement is approved by both parties, whichever occurs first, subject to the terms and conditions set forth below. Section 2. Terms and Conditions of Extension of the Agreement. The Grantor's consent to the extension, described above, is subject to, and conditioned upon, the following terms and conditions, all of which are hereby incorporated in the Franchise Agreement: A. All terms and conditions of the existing Franchise Agreement shall remain in full force and effect during the extension period. B. The extension shall have no adverse effect on Grantee's compliance, nor shall the extension be grounds for any change or modification in the remaining terms, conditions and obligations of the Franchise Agreement. Further, the extension of the franchise agreement will not affect, diminish, impair or supercede the binding nature of the existing ordinances, resolutions and agreements applicable to operation of the cable system. C. The Grantor's consent to extend the Franchise Agreement, as set forth herein, shall not be construed, in any manner whatsoever, to constitute a waiver or release of any rights that the Grantor may have under the Franchise Agreement, whether those rights arose before or after the change in control to Grantee and the fact that such deficiencies may have existed prior to the change in control shall not be a defense against correction of the deficiencies or non-compliance. D. Both parties hereby reserve all rights under applicable provisions of the Cable Communications Policy Act of 1984 (The "Cable Act"), including, without limitation, Sections 626 and 635. Nothing herein shall be deemed or construed as a waiver, release or surrender of any right that either party may have under the Cable Act or any applicable law. ADOPTED this day of 2005. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk City Manager REVIEWED AND ADOPTED AS TO FORM: