HomeMy WebLinkAbout12/15/2004 - STAFF REPORTS (11) DATE: December 15, 2004
TO: City Council
FROM: Assistant City Manager - Administration
SUBJECT: Cable Television Franchise Extension
RECOMMENDATION:
It is recommended that the City Council approve: (1) a Resolution Extending the Cable
Television Franchise Granted to Palmer Cablevision under Agreement 2792 through
December 31, 2005; and (2) a Resolution Extending the Cable Television Franchise Granted
to Warner Cable Communications under Agreement 2535 through December 31, 2005.
SUMMARY:
The City has heretofore entered into two separate franchise agreements for cable television
services. Although these agreements are with the same cable operator, Time Warner, they
cover different areas of the community. Time Warner has indicated that they would like to
commence informal negotiations with the City for the purpose of renewing the franchise
agreements. In order to properly facilitate negotiations, staff is recommending that the
franchise agreements be extended through December 31, 2005.
BACKGROUND:
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
Council granted a franchise agreement on or about January 20, 1988 with Warner Cable
Communications. This agreement was for a 15 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 15 year term expiring on November 15,
2005.
Both franchise agreements have been sold and transferred to different cable operators over
the years. Time Warner is the current operator of the cable system. Time Warner has
provided the City formal notice of 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 procedures for renewing a cable franchise are governed primarily by federal law.
Specifically, Section 626 of the Cable Communications Policy Act of 1984, (47 U.S.C. § 546)
establishes the requirements for renewal. Under this Act, the City can follow either, or both, of
two processes available for franchise renewal: a formal and an informal renewal process.
Generally, a cable operator will ask the city to begin formal proceedings at the same time it
asks the city to begin to negotiate informally. If informal negotiations fall through, a city and
cable operator can then proceed through the formal renewal process.
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RESOLUTION NO. 21159
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, 2005.
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 Franchise Agreement with Grantee will expire on January 20, 2005; and
WHEREAS, Grantee has filed timely notice of intent to renew its Franchise Agreement
with Grantor; and
WHEREAS, the Grantor and Grantee desire to negotiate informally in good faith the terms
and conditions of a new Franchise Agreement; and
WHEREAS, the parties agree that negotiations will not be completed before the expiration
of the current Franchise Agreement; and
WHEREAS, to facilitate negotiations relating to the renewal of the Franchise Agreement
the parties have agreed to extend the existing Franchise Agreement through December
31, 2005 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
2005.
The Grantor hereby agrees and consents to extend the current Franchise Agreement,
granted to Grantee pursuant to Agreement 2535, through December 31, 2005 or until a
new Franchise Agreement is approved by both parties, whichever occurs first, subject to
the terms and conditions set forth below.
9B1
Resolution 21159.
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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 15th day of December 2004.
AYES: Members McCulloch, Mills, Pougnet and Mayor Oden
NOES: None
ABSENT: Member Foat
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk City Manager
REVIEWED AND ADOPTED AS TO FORM:
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