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HomeMy WebLinkAbout1986-374 . RESOLUTION NO. 86-374 RESOLUTION OF THE CITY OF SAN BERNARDINO CONCERNING THE TRANSFER OF THE CABLE TELEVISION SYSTEM FRANCHISE FROM GROUP W CABLE, INC. TO COMCAST CABLEVISION CORPORATION OF CALIFORNIA. WHEREAS, Group W Cable, Inc. through its wholly-owned subsidiary GWC 78, Inc., (collectively referred to hereinafter as "Group W") owns and operates a cable television system in the City of San Bernardino (the "City"); and WHEREAS, the City has been advised by Group W that control of the Group W subsidiary operating the cable television franchise in the City (GWC 78, Inc.) will shortly be transferred to Comcast Cablevision Corporation of California, a subsidiary of Comcast Corporation; and WHEREAS, Comcast has agreed, by letter of June 10, 1986 (attached hereto) in response to the City's request, to commence, in consultation with the City, an analysis of the cable system's technical capabilities, its customer needs, market conditions and the capital costs required to expand the system's channel capacity, and to complete this study and submit it to the City one year from the date of this resolution; and -1- . . WHEREAS, provided that such analysis demonstrates to Comcast that such expansion in channel capacity is economically, technically and financially feasible, Comcast will commit funds for such channel capacity expansion to be completed no later than early 1993; and WHEREAS, Comcast will design for expansion of channel capacity to 450 MHz (54 channels), however, Comcast may find that a phased-in expansion of channel capacity over time is a more feasible approach. This means that Comcast may upgrade the plant to 300 MHz (36 channels) initially, then expand to 360 MHz (42 channels), or 450 MHz (54 channels), as warranted; and WHEREAS, within twelve (12) months of the date of this resolution, Comcast will install and maintain a program origination/ insertion point at City Hall, installation shall include labor, materials and equipment, and will provide to the City the production equipment listed on "Exhibit A" of this Resolution, and Comcast will activate and maintain the program origination/insertion point located at the San Bernardino Library (6th and E Streets); and WHEREAS, Comcast, upon reaching at least 36 channels of its channel capacity expansion and system upgrading project, has agreed to provide, in accordance with Section 611 of the Cable Communications Policy Act of 1984, and in Section 14.08.030 of the San Bernardino Municipal Code, at least one channel without charge for the exclusive use of the City, one channel for educational uses and one channel for public access uses, provided however, that Comcast shall continue to provide one channel dedicated for Public, Educational and Government Access, regardless of the cable system's channel capacity; and -2- WHEREAS, Comcast has agreed, within six months of the effective date of the transfer of control to Comcast Cablevision Corporation of California, to use its best efforts to reduce channel "sharing" and increase the diversity of programs being offered to subscribers by utilizing the programming flexibility recently achieved with the changes in the. former "must-carry" rule; and WHEREAS, Comcast has agreed to work with the City in developing a comprehensive line extension policy for serving existing and future areas within the City that for various reasons have been omitted from receiving cable service in the past, and the City and Comcast agree to use their best efforts to develop a mutually satisfactory line extension policy within six months of the effective date of the transfer of control to Comcast Cablevision Corporation of California; and WHEREAS, Comcast has agreed to continue a preventive maintenance program to guarantee optimum performance and quality of service to all subscribers; and WHEREAS, Comcast has agreed to comply with all provisions of Chapter 14.08 of the San Bernardino Municipal Code, as modified by the Cable Communications Policy Act of 1984, and as clarified by the attached Memorandum of Understanding which is incorporated by reference as if fully set forth herein; and WHEREAS, Comcast and the City agree that the franchise fee for this transferred franchise shall continue to be 4 percent of gross revenue until such time as the City shall determine that the fee for all local cable franchises is to be adjusted to 5 percent of gross -3- revenues as provided in Section 14.08.110 of the San Bernardino Municipal Code and as authorized by the Cable Communications Policy Act of 1984; and WHEREAS, Comcast and the City agree that the term of this transferred franchise shall expire on December 31, 2003; NOW, THEREFORE, THE MAYOR AND THE COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO HEREBY ratify the transfer of the cable television system franchise of Group W, GWC 78, Inc., to Comcast Cablevision Corporation of California, subject to compliance hereinafter by Comcast Cablevision Corporation of California with all provisions of Chapter 14.08 of the San Bernardino Municipal Code, as modified by the Cable Communications Policy Act of 1984 and as clarified by the attached Memorandum of Understanding incorporated by reference herein, and all the agreements reflected in this Resolution and its WHEREAS clauses. This ratification, and the agreements contained in this Resolution and the Memorandum of Understanding shall be accepted by a letter from the President of Comcast Cablevision Corporation of California to be filed with the City Clerk of the City of San Bernardino within 30 days from the adoption of this Resolution. -4- I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Conunon Council of the City of San Bernardino at the adjourned reqular meeting thereof, held on the 1?nn day of Seotemher , 1986, by the following vote, to wit: AYES: Councilmembers Estrada. Reillv. Hernandez. Marks. Quiel. Frazier. Strickler NAYS: None ABSENT: Nonp. ~~~A// Ci trClerk The foregoing resolution of September , 1986. o?~cL day Approved as to form: ~~~ City A orney -5- UNITS 3 3 1 1 1 1 1 2 2 7 1 1 1 1 1 1 1 1 3 2 3 1 EXHIBIT "A" EQUIPMENT TO BE DEDICATED TO THE CITY OF SAN BERNARDINO EQUIPMENT DESCRIPTION* Panasonic WV-V3, W-Canon 15, 1 Lens; 3 tube color camera with camera cable, lens, and all CCU. Servo Pan/Tilt/Zoom Mounts JVC KM-2000 S.E.G.; Video Switcher Shure M267 with A268; rack adaptor/audio mixer Quanta QCG-100B; dual channel character-generator Catel RF Modulator Winstead G8527-Based Custom 3-RK; rack system Videotek RM-12RA with 9-10 pin cables; video monitors, color panasonic WV-5362 video monitors; dual black and white Colortran 1K 6" Fresnel with access; lighting, permanent SONY VO-5850 with RMM-50l mounts; VCR editing 3/4" SONY VO-5800 with RMM-501 mounts and RFU-634 modulator; record/play VCR 3/4" SONY RM-440 with type 5 cables; edit controller with cables ADDA WV-3; time base corrector Tektronix 528 A; waveform monitor with rack mount SONY VO-6800 with 2 batts, charger; portable VCR 3/4" with access Bogen 3050 with fluid head, dolly; portable tripod, head and dolly Lowell elemental kit; portable lighting package SONY ECM-150; microphones, accessories McLean 23B408A17 rack fans Telex Head Sets Videotek APM-2RA dual channel monitor/speaker with amp * Equipment may be equivalent to that identified as per this Exhibit "A". -6- EXHIBIT "A" EQUIPMENT TO BE DEDICATED TO THE CITY OF SAN BERNARDINO Title to the equipment listed on the previous page will be vested in the City of San Bernardino. For newly purchased equipment, manufacturer's warranties will be in the name of the City; should any of the equipment be provided from existing inventories, Comcast Cablevision Corporation of California provides a one (1) year warranty on the equipment to the City. -7- ...- dO^?-. .P ,/ . . MEMORANDUM OF UNDERSTANDING CONCERNING CLARIFICATION OF CERTAIN PROVISIONS OF . CHAPTER 14.08 OF THE SAN BERNARDINO MUNICIPAL CODE AS IT PERTAINS TO THE CABLE TELEVISION FRANCHISE TRANSFERRED TO COMCAST CABLEVISION CORPORATION OF CALIFORNIA ,- On the 22nd day of Seotember , 1986, the City of San Bernardino by Resolution No. 86-374, ratified to the transfer of GWC 78, Inc. the holder of the cable television franchise, from Group W Cable, Inc. to Comcast Cablevision Corporation of California, the Transferee. Under the terms and conditions of Resolution No. 86-37~ GWC 78, Inc. and the Transferee, will be bound by the terms and conditions of Chapter 14.08 of the San Bernardino Municipal C;ode as modified by Resolution No. 86-374 and this Memorandum of Understanding. It is the intent of this Memorandum of Understanding to clarify the application of certain provisions of Chapter 14.08 to the operation of the cable television system transferred to Comcast and it is further understood that this Memorandum of Understanding is incorporated by reference into Resolution No. 86-374 as if fully set forth therein. Certain provisions of Chapter 14.08 are in conflict with the Cable Communications Policy Act of 1984 and they have not been specifically modified or deleted. Both parties agree that it is their shared intention that these provisions in Chapter 14.08 of the San Bernardino Municipal Code have been preempted by the federal law and thus are no longer legally binding. 14.08.010 Definitions "Gross revenues" shall mean any and all compensation from whatever source, either directly or indirectly received by the system for cable services rendered by the Grantee in the franchised area of the City of San Bernardino under the terms and conditions of its franchise. Gross revenues shall exclude monies received by the Grantee for line extensions. 14.08.070 Cable television service - Subscriber complaints. D. Grantee shall not be required to have a 24-hour toll free number in operation for the purpose of receiving and resolving billing adjustments. E. Because Grantee maintains its log of subscriber complaints as part of its computerized billing system, reasonable time must be allowed to request a "print out" of this information before the City could review the log. Such records must be kept for a period of three years from the , date of the complaint. ..- r- 14.08.080 Municipal service. B. Grantee shall be required to provide one Basic Service cable drop to municipal and public institutions at no cost and only upon the request of the Chief Administrative Officer or his or her designee and only when it is technically and economically feasible to do so. 14.08.110 Franchise payments. Franchise payments will be made on a quarterly basis. Payments must be made to the City no later than thirty (30) days after the end of the each quarter; payments made after this date will result in an interest charge at the prime interest rate plus one percent, the prime rate shall be based on the San Bernardino Interstate Bank rate on the date of computation. 14.08.170 Expiration of Franchise - Payment for damaqes. Grantee shall be required to make payment to the City only in the event of any unlawful holding over after the expiration of the franchise. 14.08.270 Performance deposit to city. Grantee shall not be required to have a performance deposit. 14.08.280 Performance bond for subscribers. Grantee shall maintain in full force and effect its Performance Bond in the amount of five thousand dollars ($5,000.00). 14.08.300 Defense of litiqation. B. Grantee shall be allowed to enter into settlement agreements without the prior written consent of the City, if Grantee is solely responsible for the settlement. - 14.08.400 Franchise a privileqe held in personal trust. A. In the event of a transfer in trust, mortgage or hypothecation, consent of the council shall not be required, provided however, that. nothing contained herein shall authorize the Grantee to transfer control and/or ownership of the franchise to a lender, or to allow a lender to assume operation of the cable system without the prior consent of the Grantor. 14.08.470 Rights reserved to the city. I A.5. Grantee shall not be required to make any payments to the City for PEG Access production equipment, nor shall Grantee be required to provide such equipment, except as provided for in Resolution No.86-374. C. In the event the City desires to purchase the cable system, other than pursuant to the lawful exercise of eminent domain, the City shall have the right to purchase the system for a fair and just value only if Grantee wants to sell the system. .....- 14.08.490 procedure for adopting new rules and requlations. A. When adopting new rules or regulations which affect the Grantee, its business, franchise or operations, the council will limit the scope of such new rules or regulations to the lawful exercise of the City's police power, consumer protection, enforcement of construction and technical requirements and standards, access rules and financial reporting requirements. Notwithstanding this right of the City to promulgate new rules and regulations, new rules and/or regulations that would require the expenditure of capital shall be mutually agreed to by the City and Grantee. 14.08.530 Preference or advantage in charges prohibited. Grantee may have different rates for Senior Citizens, bulk accounts and promotions. However, with the exception of bulk accounts which are negotiated on a case-by-case basis, rates for Senior Citizens and promotions shall be offered on a nondiscriminatory basis within the identified group. 14.08.540 Permits and construction. , B. Grantee shall be required to notify the City of any and all filings as described in this section, but shall only be required to send copies of such filings to the City upon the City's request. 14.08.600 Duty of grantee to protect. relocate. etc. property. B. The conditions for abandonment shall be limited to requirements necessary to protect the health and safety. 14.08.680 Prohibited acts of grantee. C. Grantee shall be allowed to carry advertising on the cable system and include advertising materials in monthly billing statements for television and radio retail and service businesses. New section Force Majeure. Grantee shall not be deemed in violation of its franchise for the delay in performance or failure to perform in whole or in part its obligations under this franchise due to labor dispute, material shortage, war or act of war (whether an actual declaration of war is made or not), insurrection, riot, act of public enemy, accident, fire, flood, or other act of God or by other events to the extent that such events are caused by circumstances beyond Grantee's control. Accepted on this ~ day of 67~~ ~"~ ~78, c./Comcast ... , i~ ~. .- .' " ComcasI Cable ~,IilC. One lleImOnl- 8aII Cynowwd, Fl\ 19004 215 e&7-t200 '@BCDMCAST .June 10, 1986 Mr. RayDmd D. Sc:hweitier Deputy City Mministrator City of San Bemardino 300 North "D" Street San Bemardino, California 92418 Dear Mr. Schweitzer: I Recently, Ms. Barbara Lukens, Vice .Presi~, Public Affairs, ('-O"'("~ct Cable Call'lnnications, Inc., met with you and other- JDeDbers of City staff to it;c:n,c,> the City's cable television service and the upcnni~ change in the ownership of Group W Cable, Inc. As part of the cJic('lIcsicn, the City raised questions about future channel <""P"'dty expansion of the system. In a letter to the City dated May 22, 1986, Ms. I.u1cens provided you with additional explanatoxy infcmDation about C.......lI'~t's policies and procedures concerning decisions to JiloiIHy, upgrade and/or rebuild a cable system. At this time, I would like to provide you with mre specific information concerning ())mt-prt's thinking on this matter regal'ding the cable system serring residents of the City of San Bernardino. . .. . . First and foreJDst, I want you to know that ('nn('..ct. is prepared to expand the cable system's channel c"T"'city. Q,m-..ct will j- ~i..tely begin its analysis of the cable system's tecbnical capabilities, custaDer needs, I18I'ket ccnditions and capital costs. . This lIIOJ'lt sholllcJ be caupleted by IIid-1987. Provided that the decision to pdlCeed foIward with a channel capacity expansim is ec:cncmically, tec:1mi,...11y and finan- cially feasible, ~ct will budget the project ~ begin DO later than 1990. Depending on the size and scope of the upgrade project, Qlll)letim shculd be ~lished within 2 to 3 years of the. ~nni. of actual. construction writ. It is of course possible that tlJis could begin prior to 1990 if market ccnditions warrant the elT"""'iture of capital 8Dd .. feel there is a realistic uwO' tunity to earn a return on the invest:IIIent. Comcast will design the cable system to be capable of carrying 54 channels of prut.cauming. However, during our analysis and subsequent planning, we may find that phased in channel capacity ~cion is the JlDst prudent teclmica1 approach. This means that we uy upgrade'the plant to 36 c:lumnAls initially, then expand to 40 channels, and ultimately to 54 channels, as. necessary. These decisions depend in large part on the current. conditioil; of the cable plant and the market itself. . ,,,- . Mr.~)1DoS'id D.Schweitzer City of San. BernardinO June la, 1986 Page Two In the interim, ('~.ast. will contimJe the preventive _intenanc.e prva.- . established by GrcqJ 1'1 Cable and will be reviewing the p...ata line-up. PresenUy, the cable system offers subscribers 29 pXV5.;....d c:hamels web iDclude local bxoadc:ast channels, advertiser-suPPorted cable sexvk.es, premiua IOvie and entert..i~t services and local pxva.-ing and access channels. In order to offer the widest range of Pro&.ouoding, 5CDe channels share time with various services. ~'to the fOIllle1' ''Just- cany" TOle, the cable opexator was xequired to carry all of the local blW~~t stations regardless of custaller interest or prefexence. In the San Jlema1'dino area this meant that several channels wre'unavailable for alternative prograDllling. As you my 1cnow, the "lIUst-cany" TOle is 110 longer legally binding and this change in the law may allow for 5CDe prvatam flexibility in the future.' . . .. . As ycu may know, C<Pc.."'t is establishing a Western Regian office in Southern California. Jim llequette, Regional Vice President, Maureen tIhalen, Regional Counsel and DiTeCtOr of Goveu....eo.t Relations. Mike Iemph. Genexal Manager. and Baxbara Lu1cens. will work with you to ensure that the City is fully apprised of all future planning. J hope this letter and its COIIIIIitments clarify Canc.."'t's intentions concerning the cable system serving the City of San Bernardino. Should you have any further questions. please contact Mike Keqm or any JIIeIdlers of the Coml""st management team. Vexy txuly yours. ~~ Robert B. Clasen President RBC/DIIl 0::: J. w. Bequette, Group 1'1 Cable M. r~, Group W Cable JI. lftIalen. Group . Cable B. LuJctms. Comc.aq - 'r -, , I) ..- . " ~ ,\ , . ComcaSi eabie . ConwnurliCalicnS. Inc. One BerncnlNeroJe IlaIa Cynwyd. ~ 1900& 21~ e67~ . @iJCOMCAST June 10, 1986 Mr. Raymnd D. SchweitZer Deputy City Administrator City of San Bernardino 300 North liD" Street San Bernardino, California 92418 Dear Mr. Schweitzer: Recently, Ms. Barbara L\Jkens, Vice .Presi~t, Public Affairs, Cnnr,"'t Cable Cgml1.ucations, Inc., ret with you and other- .....ur~ of City staff to .H~15S the City'S cable television service and the ~itlg change in the ownerShip of Group W Cable, Inc. As part of the disc:ussim, the City raised questions about future c:bamel c~dty expansion of the system. In a letter to the City dated May 22, 1986, Ms. Lukens provided you with additional explanatOIy information about Conr'l~'s policies and procedures concerning decisions to mdHy, upgrade and/or rebuild a cable system. At this time, Il<<lUld like to provide you with lOre specific information concerning ~"5t's t.bin1d1\g on this matter regarding the cable system serving residents of the City of San Bernardino. . First and foremost, 1 want you to know that Comcll'c:.t is prepared to expand the cable system's charmel c~p"city. C........c:.t will i-"i:ate1y begin its analysis of the cable system's technical capabilities, CUStaDer needs, Jl8rket ccnditions and capital costs. This work should be CClDPleted by mid-1987. Provided that the decisim to pt~ forward with a channel c'lp"dty expansion is ecnnnmica11y, teclmically and finan- cially feasible, C~c:.t will budget the project ~ begin JIIO later than 1990. Depending on the size and scope of the upgrade project, (:(lq)letion should be ~lished within 2 to 3 years of the bej;nnil'l of actual- consttuction 1IlOrJc. It is of course possible that tl)is could begin prior to 1990 if market cmditions warrant the e~iture of capital and lie feel there is a realistic UWU' tunity to eam a return on the investment. Comcast will design the cable system to be capable of carrying 54 charmels of p1"X.........ing. However, during our analysis and subsequent planning, we may find that phased in charmel capacity eJT"1'..inn is the IIIOst prudent technical approach. nus means that we .., \w'. the plant to 36 charme1s initially, then expand to 40 charme1s, and ulti.lllately to 54 channels, as.' necessary. These decisions depend in large part on the current. conditioil of the cable plant and the market itself." ..- , ,Mr': RaymoDdl>. 'Schweitzer City of San Bernardino June 10, 1986 Page Two In the interilll, Calcast" will continue the preventive lIllintenance progT8111 establisbec1 by Group W Cable and will be reviewing the program line-up. Presently, the cable system offers subscribers 29 Pl"51~ channels which iDelude local broack:ast channels, advertiser-supported cable seJ:Vices, }m""iulI JIlOvie and entertainment services and local plva~.......ing and ~s channels. In order to offer the widest. range of progt'l"""i"l, SCIIIe channels share time with various services. Due'to the fo~ ''DaJst- carry" tUle. the cable operator was required to carry all of the local broll"c'....t stations regardless of custcDer interest or preference. In the San BematdiDo area this JDe8Jlt that several channels wennmavai1able for alternative progranming. As you my 1cnow,the ''Dust-carry'' rule is no longer legally binding and this change in the law may allow. for SCDe I'lva1.llll flexibility in the future. . ., ' As you my lcnow. Cancll,>t is establishing a Western Region office in Southem California. Jim Bequette. Regional Vice President, Maureen Whalen, Regional Counsel and Director of Gove11lDleslt Relations. Milce Iemph, General Manager. and Barbara Lukens. will work with you to ensure that the City is fully apprised of all future planning. r I hope this letter and its COIIIIIitments clarify Canr""t's intentions conceming the cable system serving the City of San Bernardino. SOOuld you have any further questions. please contact Mike XeqIh or any memers of the eomoo"t. management team. Very troly yours, ~COe-- Robert B. Clasen President ROC/m a:: J. W. Bequette. Group W Cable M. 1eIIJh. Group W Cable )(. llbalen. Group . Cable B. Luktms. ComcAq y "' . '5 " Corneast Cable Communications, Inc. One Belmont Avenue Bala Cynwyd, PA 19004 215667-4200 RE('e' \ ~CDMCAST ~Q(, Cd n~'- 23 ,I" n n ,r'l H';;' .u FEDERAL EXPRESS October 22, 1986 City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 Attention: Shauna Clark, City Clerk Re: Resolution No. 86-374 Dear Ms. Clark: In accordance with the requirement in Resolution No. 86-374 approved by the Mayor on September 24, 1986, I hereby accept this ratification, the agreements contained in this Resolution and the Memorandum of Understanding incorporated by reference. Sincerely, Rt>~ Robert B. Clasen, President Comcast Cablevision Corporation of California RBC:gev cc: Raymond D. Schweitzer, Deputy City Administrator James W. Bequette, Comcast Vice President Maureen Whalen, Comcast Western Regional Counsel Mike McDonald, General Manager '. " .' ., ,. . GROUP W CABLE xxx September 12, 1986 Mr. Raymond D. Schweitzer Deputy City Administrator City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 Dear Ray: Based on 'our mutual aqreements at the final neqotiations session between the City of San Bernardino and Comeast CaDlevision Corporation of california held at City Hall on September 10th, I am happy to,submt~ ~e enclosed Resolution and Memorandum of Understandinq. These documents fully represent Comcast's commitments to the City. comcast'. General Counsel requested that we leave the punctuation as is within the NOW THEREFORE clause, therefore, I have not inserted the parens around the CaDle Communioations policy Act. If this continues to pose a problem with the City, please let me know. With this exception, the enclosed documents reflect all other changes and agreements. So as not to confuse the issues, I have enclosed a separate letter outlininq Comcast's commitment to provide the City with a vehicle. As we discussed, I hope that .this .lII&tter can be scheduled for the September 22nd City Council meeting. Mike Kemph and I are available to answer any of the City'S questions and we will both be in attendance at the Council meeting. Than~ you for all of your assistance on this matter. Sincerely, Maureen T. Whalen Western Region Counsel ee: James W. Bequette, Vice President Michael Kemph, General Manaqer Stanley Wang, General Counsel Barbara Lukens, Public Affairs Harold Horn, CTIC , .' \ " " GROUP W CABLE ~x ]UCIt_IIBliIlIIIlj:~~36' 888 W. Santa Ana Blvd. Santa Ana, CA 92701 (714) 953-7633 September 12, 1986 Mr. Raymond D. Schweitzer Deputy City Administrator City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 Dear Ray: Based on our mutual agreements at the final negotiations session between the City of San Bernardino and Comcast Cablevision Corporation of California held at City Hall on September 10th, I am happy to submit the enclosed Resolution and Memorandum of Understanding. These documents fully represent Comcast's commitments to the City. Comcast's General Counsel requested that we leave the punctuation as is within the NOW THEREFORE clause, therefore, I have not inserted the parens around the Cable Communications Policy Act. If this continues to pose a problem with the City, please let me know. With this exception, the enclosed documents reflect all other changes and agreements. So as not to confuse the issues, I have enclosed a separate letter outlining Comcast's commitment to provide the City with a vehicle. As we discussed, I hope that this matter can be scheduled for the september 22nd City Council meeting. Mike Kemph and I are available to answer any of the City's questions and we will both be in attendance at the Council meeting. Thank you for all of your assistance on this matter. Sincerely, Maureen T. Whalen Western Region Counsel cc: James W. Bequette, Vice President Michael Kemph, General Manager Stanley Wang, General Counsel Barbara Lukens, Public Affairs Harold Horn, CTIC