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HomeMy WebLinkAbout04 - Adelphia & Cox Cable Telecommunications Franchise ExtensionCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 4 (January 28, 2003) TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Office of the City Attorney Robin L. Clauson, Assistant City Attorney, 644 -3131, rclauson @city.Newport- beach.ca.us SUBJECT: Ordinance Extending Non - Exclusive Franchises with Adelphia & Cox Cable Telecommunications ISSUE: Should Franchise Agreements with Adelphia & Cox Cable be extended for one year? RECOMMENDATION: It is recommended that the City Council approve first reading of the attached ordinance and pass to second reading and adoption at the City Council's next regularly scheduled meeting. DISCUSSION: Background: The Ad Hoc Telecommunications Committee was formed by the City Council in part to review expiring City franchise agreements with our two current cable television companies, Adelphia Cable Communications and Cox Communications and prepare for negotiations to revise and renew those franchises. The current franchise agreements expired on January 27, 2002 and Extension Agreements were approved for one year in order to study all aspects of technological, programming and service advances occurring since the original contracts were signed in 1967, over 36 years ago. Since both the cable franchises will expire on January 27, 2003, the Telecommunications Committee has adopted a work schedule that will accomplish the negotiations so that a new cable franchise ordinance can be brought to the City Council prior to January 2004. The City hired cable consultant Sue Buske, The Buske Group, to provide an in -depth Cable Needs Assessment Report with efforts commencing in February, 2002 and which Ordinance Ext. Non - Exclusive Franchises with Adelphia & Cox Cable Telecommunications January 28, 2003 Page 2 included eight in -depth focus group workshops conducted in May, an independent and statistically valid telephone survey report, analysis of strategic plans from local organizations for assuring community future goals were considered, distribution of flyers, posters and brochures, promotion via on -going cable programming and a series of Daily Pilot ads. Great care has been taken in soliciting public input on what the community desires for local programming options and documentation on inquiries and comments from citizens has also been ongoing since September, 2001. On October 17, 2002 one final community leaders' workshop was held to assure all opportunities were extended in order to complete data to the Buske Report. A draft of the Report dated December 13, 2002 was received close to the holidays and City staff was unable to adequately study the 85 -page chronicle in time to make recommendations regarding contract development with the two cable companies. Moving forward, it is anticipated that staff recommendations will be submitted to the Ad Hoc Telecommunications Committee in February, and a report and recommendations of the Telecommunications Committee will be brought to the Council in March. Following action by the Council, the informal negotiations between Adelphia and the City and Cox and the City should begin with completion prior to the extended deadline of January 27, 2004. Environmental Review: Extension of existing franchise does not require environmental review. Public Notice: Cable companies have been notified by U.S. Mail and facsimile on January 21, 2003. Prepared and Submitted by: SIGNATURE Robin L. Clauson, Assistant City Attorney Attachments: Ordinance Amending Section 4 of Ordinance Nos. 1196 & 1197 Franchise Extension Agreement between City of Newport Beach & Adelphia Franchise Extension Agreement between Clty of Newport Beach & CoxCom F:luserslcat\s haredldalC CstaffReportslC oxAd el ph is ExFranAgt' ORDINANCE NO. 2003- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 4 OF ORDINANCE NOS. 1196 AND 1197 TO EXTEND NON- EXCLUSIVE FRANCHISES WITH ADELPHIA CABLE COMMUNICATIONS AND WITH COX COMMUNICATIONS THIS ORDINANCE is made with respect to the following RECITALS WHEREAS, by approving Ordinance No. 1197 and its later amendments within Ordinances No 1365 and 91-43, and 2001 -23, the City of Newport Beach entered into a cable television franchise agreement ( "Franchise Agreement ") with Adelphia Cable Communications and its predecessor companies, Comcast Cablevision, Newport Beach Cablevision Incorporated, and Warner Brothers TV Service, Incorporated on or about December 7, 1966. The Franchise Agreement will expire on January 27, 2003; and WHEREAS, by approving Ordinance No. 1196 and its later amendments within Ordinances No. 1891 and 91-42, 2001 -23, the City of Newport Beach entered into a cable television franchise agreement ( "Franchise Agreement') with CoxCom, Incorporated (dba Cox Communications) and its predecessor companies, Dimension Cablevision and Community Cablevision, on or about December 7, 1966. The Franchise Agreement will expire on January 27, 2003; and WHEREAS, City and Adelphia and the City and CoxCom desire to extend each respective Franchise Agreement for one year to allow for additional time for negotiations to consider the renewal of each Franchise Agreement. NOW THEREFORE the City Council of the City of Newport Beach does ordain as follows: SECTION 1: Section 4 of Ordinance No. 1196 is hereby amended to read as follows: (a) This Franchise commenced January 27, 1967 and shall terminate on January 27, 2004. SECTION 2: Section 4 of Ordinance No. 1197 is hereby amended to read as follows (a) This Franchise commenced January 27, 1967 and shall terminate on January 27, 2004. SECTION 3: This extension of Franchise shall not become effective until written acceptance in the form attached to Ordinance as Exhibit "A" and Exhibit "B" has been fully executed and filed with the City Clerk within 10 days after the adoption of this Ordinance. SECTION 4: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 5: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 28th Day of January, 2003, and was adopted on the 11th Day of February, 2003, by the following vote, to wit: AYES, COUNCILMEMBERS, NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS ATTEST: LaVonne Harkless, City Clerk F:\users\cat\sha red\da\Ord i na nce \Cox &Adelph is ExtFra nAgt.doc FRANCHISE EXTENSION AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND ADELPHIA CABLE COMMUNICATIONS This Franchise Extension Agreement is entered into between the City of Newport Beach and Century-TCI California LP, dba Adelphia Cable Communications ( "Adelphia ") this 28'" day of January, 2003, with regards to the following facts: RECITALS WHEREAS, by approving Ordinance No. 1197 and its later amendments within Ordinances No 1365 and 91-43, the City of Newport Beach entered into a cable television franchise agreement ( "Franchise Agreement') with Adelphia Cable Communications and its predecessor companies, Comcast Cablevision, Newport Beach Cablevision Incorporated, and Warner Brothers TV Service, Incorporated on or about December 7, 1966. The Franchise Agreement will expire on January 27, 2003; and WHEREAS, City and Adelphia desire to extend the Franchise Agreement for one year to allow for additional time for negotiations to consider the renewal of the Franchise Agreement. NOW THEREFORE, the Parties agree as follows: 1. The Franchise Agreement shall be extended to January 27, 2004. During said extension, the terms and conditions of the current Franchise Agreement shall remain in full force and effect without modification. 2. 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 parry may have under the Cable Act or any applicable law. Nothing herein shall waive, release or otherwise relieve the Operator, or any predecessor thereof, from any Franchise Agreement breaches or violations, if any exist, or other violations of law, if any, and the grant of this Franchise Agreement extension shall not be utilized by the operator for any purpose other than to extend, and document the extension, of the Franchise Agreement through January 27, 2004. EXHIBIT "A" 1 IN WITNESS WHEREOF, the parties hereto have caused this franchise Extension Agreement to be executed in duplicate on the date and year first written herein. APPROVED AS TO FORM: CITY OF NEWPORT BEACH City Attorney CITY OF NEWPORT BEACH: CENTURY -TCI CALIFORNIA L.P. d /b /a/ ADELPHIA CABLE COMMUNICATIONS F:luserslcat\sha redldaW,g W delphiaExtFranAgt. doc EXHIBIT "A" 2 FRANCHISE EXTENSION AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND COXCOM INCORPORATED This Franchise Extension Agreement is entered into between the City of Newport Beach and CoxCom, Incorporated, dba Cox Communications Orange County ( "Cox ") this 28th day of January, 2003, with regards to the following facts: RECITALS WHEREAS, by approving Ordinance No. 1196 and its later amendments within Ordinances No. 1891 and 91-42, the City of Newport Beach entered into a cable television franchise agreement ( "Franchise Agreement') with CoxCom, Incorporated (dba Cox Communications Orange County, a wholly -owned subsidiary of Cox Communications, Inc., a Delaware Corporation.) and its predecessor companies, Dimension Cablevision and Community Cablevision, on or about December 6, 1966. The Franchise Agreement will expire on January 27, 2003; and WHEREAS, City and Cox desire to extend the Franchise Agreement for one year to allow for additional time for negotiations to consider the renewal of the Franchise Agreement. NOW THEREFORE, the Parties agree as follows: 1. The Franchise Agreement shall be extended to January 27, 2003. During said extension, the terms and conditions of the current Franchise Agreement shall remain in full force and effect without modification. 2. 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. Nothing herein shall waive, release or otherwise relieve the Operator, or any predecessor thereof, from any Franchise Agreement breaches or violations, if any exist, or other violations of law, if any, and the grant of this Franchise Agreement extension shall not be utilized by the operator for any purpose other than to extend, and document the extension, of the Franchise Agreement through January 27, 2004. 1 Exhibit "B" IN WITNESS WHEREOF, the parties hereto have caused this franchise Extension Agreement to be executed in duplicate on the date and year first written herein. APPROVED AS TO FORM: CITY OF NEWPORT BEACH City Attorney CITY OF NEWPORT BEACH: COXCOM, INCORPORATED d /b /a/ COX COMMUNICATIONS ORANGE COUNTY F:luserslcat\sharedlda W g1CoxFranExtAgt.doc Exhibit "B" 2