The URL can be used to link to this page

Home My WebLink About75C - ADELPHIA CABLE REQUEST FOR COUNCIL ACTION ~ ~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: APRIL 18, 2005 TITLE: APPROVED 0 As Recommended 0 As Amended 0 Ordinance on 1 st Reading 0 Ordinance on 2nd Reading 0 Implementing Resolution 0 Set Public Hearing For PUBLIC HEARING - NONEXCLUSIVE FRANCHISE AGREEMENT WITH ADELPHIA CABLEVISION OF SANTA ANA ~~ CONTINUED TO ./ FILE NUMBER RECOMMENDED ACTION 1. Adopt an ordinance renewing a nonexclusive franchise agreement with Adelphia Cablevision of Santa Ana to operate a cable television system within the City of Santa Ana, and authorize the City Manager and Clerk of the Council to execute the same on behalf of the City. 2. Approve a resolving authorize on behalf settlement agreement with Adelphia Cablevision of Santa Ana customer service compliance and franchise fee audits, and the City Manager and Clerk of the Council to execute the same of the City effective July 1, 2005. DISCUSSION At its meeting of March 7, 2005, the City Council adopted a resolution declaring its intent to enter into a nonexclusive cable television franchise agreement with Adelphia Cablevision of Santa Ana and set a public hearing for April 4, 2005. On April 4, 2005, the City Council continued the hearing to April 18, 2005 to consider all interest in or objection to the proposed agreement in accordance with Section 1303 of Article XIII of the Santa Ana Charter. The proposed franchise renewal agreement will extend Adelphia Cable Communications' franchise to construct, operate, and maintain a cable television system for a 15-year period beginning July 1, 2005. The franchise agreement addresses, among other matters, the payment of five percent franchise fees on gross revenues; continued operation of the Institutional Network (I-Net) and Public, Educational, and Government access channels; and requirements relating to consumer protection and customer service standards. This agreement also calls for the payment of a $450,000 capital grant from Adelphia to support the City's government access channel (Channel 3). The grant will facilitate the eventual transition of production of Channel 3 programming from Adelphia to the City in alignment with current federal standards. 75C-1 Public Hearing Agreement with April 18, 2005 Page 2 - Nonexclusive Franchise Adelphia Cablevision The proposed settlement agreement resolves audits of Adelphia' s customer service response performance standards and franchise fee payments. Under the agreement, Adelphia has agreed to extend its responsibility of Channel 3 programming through the first two and-a-half years of the renewed agreement. Additionally, Adelphia will continue to assist in the maintenance of the I-Net while a transition to a new technology is studied. The settlement agreement is subject to US Bankruptcy Court approval. ENVIRONMENAL IMPACT In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. Categorical Exemption ER No. 2005- 50 will be filed for this project. FISCAL IMPACT Franchise fees received from this agreement will be deposited into the Cable Television Franchise Fee revenue account (account no. 11-01-5113). The Public, Educational, and Government Access Channels capital grant will enhance the Parks Recreation, and Community Services Agency's Special Fees and Donations miscellaneous recoveries account (account no. 22-01-5799). APPROVED AS TO FUNDS AND ACCOUNTS: h{d{~ Executive Director Parks, Recreation and Community Services Agency ~\\~.) \X_, FranC1SCO Gutierrez Executive Director Finance and Management Svcs. Agenc')y 75C-2 (JWF 4/6/05) ORDINANCE NO. NS-2683 AN ORDINANCE OF THE CITY OF SANTA ANA AUTHORIZING THE RENEWAL OF A CABLE TELEVISION FRANCHISE AGREEMENT BETWEEN THE CITY AND ADELPHIA CABLEVISION OF SANTA ANA, LLC, dba ADELPHIA CABLE COMMUNICATIONS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Adelphia Cablevision of Santa Ana, LLC, a Delaware limited liability company ("Franchisee"), is the duly authorized holder of a franchise ("Franchise") that authorizes the construction, operation, and maintenance of a cable television system within the City of Santa Ana ("City"). B. The Franchise will terminate on June 20, 2005. C. City staff has conducted inquiries for the purpose of evaluating the future cable-related community needs and interests and the cable operator's performance under the existing Franchise. A new agreement has been negotiated that is titled "An Agreement between the City of Santa Ana and Adelphia Cablevision of Santa Ana, LLC, dba Adelphia Cable Communications, Renewing a Nonexclusive Franchise to Operate a Cable Television System in the City of Santa Ana and Setting Forth Terms and Conditions Relating to the Renewal of the Franchise," a copy of which has been presented to the City Council along with this ordinance, and a copy of which is on file in the Office of the Clerk of the Council and is incorporated by this reference ("Franchise Renewal Agreement"). D. The City has reviewed the present and future cable-related needs of the community and its residents, the Franchisee's record of service and its ability to carry out its obligations under the Franchise Renewal Agreement, and the Franchisee's financial, legal, and technical qualifications to hold and to operate a cable television franchise, and has determined that the public interest 75C-3 Ordinance No. NS-XXX Page 1 of 3 would be served by authorizing the Franchise Renewal Agreement. This determination is based upon the following findings: 1. The quality of the Franchisee's service, including signal quality, response to consumer complaints, and billing practices, but without regard to the mix, quality, or level of cable services or other services provided over the system, has been reasonable in light of community needs; 2. The Franchisee has the financial, legal, and technical ability to provide the services, facilities, and equipment as set forth in the Franchise Renewal Agreement; and 3. The Franchisee's performance of the obligations set forth in the Franchise Renewal Agreement will reasonably meet the future cable-related community needs and interests, taking into account the cost of meeting those needs and interests. Section 2. The City authorizes the renewal of a nonexclusive franchise with the Franchisee to construct, operate, and maintain a cable television system within the City. This authorization is made in accordance with the applicable provisions of the Santa Ana City Charter, Article II of Chapter 15 of the Santa Ana Municipal Code, the applicable provisions of state and federal law, and the terms and conditions of the Franchise Renewal Agreement. Section 3. The Franchise Renewal Agreement submitted to the City Council is authorized and approved, and the City Manager is authorized to execute that agreement on behalf of the City following its execution by the Franchisee. Section 4. Pursuant to the California Environmental Quality Act (CEQA), a Categorical Exemption has been approved for this Project. Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Ordinance No. NS-XXX Page 2 of 3 75C-4 day of ,2005 ADOPTED this Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-2683 to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75C-5 Ordinance No. NS-XXX Page 3 of 3 75C-6