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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Lori Sassoon, Assistant City
Manager
Subject: RESOLUTION OF TIlE MAYOR
AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AMENDING THE LOCAL
CABLE FRANCHISE AGREEMENT WITH
STUBBLEFIELD CONSTRUCTION dba
MOUNTAIN SHADOWS CABLE TV SYSTEM
AND RATIFYING ALL ACTION PRIOR TO
JANUARY 2, 2008.
Dept: City Manager's Office
Date: 1/2512008
Council Meeting Date: 2/4/08
Synopsis of Previous Council Action:
December 21, 1998 - Mayor and Common Council grant Franchise Agreement to Mountain Shadows
January 2004 - Franchise Agreement extended until July 8, 2004 by Resolution 2004-18.
August 2, 2004 - Franchise Agreement extended until January 29, 2005, by resolution 2004-249
January 24, 2005 - Franchise Agreement extended until July 28, 2005 by resolution 2005-14
July 18, 2005 - Franchises Agreement extended until January 13, 2006 by Resolution No. 2005-236
January 9, 2006 - Franchise Agreement extended until July 7, 2006 by Resolution No. 2006-1
June 19, 2006 - Franchise Agreement extended to February 25, 2007 by Resolution No. 2006-173
December 18, 2006 - Franchise Agreement extended until January 2,2008 by Resolution No. 2006441
Recommended motion:
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Adopt resolution.
Signature
Contact person: Catherine Allison
Phone: 384-5122
Supporting data attached: Staff report, resolution
Ward: 4th
FUNDING REQUIREMENTS:
Amount: None
Source:
Finance:
Council Notes:
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STAFF REPORT
SUBJECT
Resolution of the Mayor and Common Council of the City of San Bernardino amending
the local cable franchise agreement with Stubblefield Construction dba Mountain
Shadows Cable TV System and ratifying all action prior to January 2, 2008.
BACKGROUND
The regulation and franchising of cable operators has changed dramatically in California
with the enactment of AB 2987. This bill, passed in 2006, was origina1ly sought by
telecommunications companies to grant them statewide franchises for the provision of
video services, was expanded to include traditional cable operators. As a result, as local
cable franchises expire, cable companies now have the option of entering into a state-
issued franchise in lieu of a local one.
The City of San Bernardino is served by three cable television providers; Time Wamer,
Charter and Mountain Shadows Cable. In December 2007, the City received letters from
Time Wamer and Charter Communications confirming their receipt of California Video
Franchise Certificates. These state franchises became effective January 2, 2008, and are
being administered by the Public Utilities Commission. As a result, Time Wamer and
Charter are no longer operating pursuant to local franchises.
With approximately 300 subscribers, Mountain Shadows Cable TV provides service to
the Mountain Shadows Mobile Home Community as well as single family homes in the
area. Due to the costs associated with applying for a state franchise, it was assumed that
the small company would likely opt for a renewal of their current local franchise, which
was dated January 1st, 1999 and expired January 2nd, 2008.
Mountain Shadows was contacted and presented with the option to renew their local
franchise under the same terms, with one modification. This adjustment is the inclusion
of a Public, Educational, and Governmental Access Support fee (PEG). This new fee will
be used to support capital equipment used for locally produced video programming,
including the broadcast of City Council meetings. This revenue can not be used for
operating costs. The fee is 1 % of Gross Revenue, and will be paid quarterly by Mountain
Shadows to the City. The PEG fee is also a provision of AB 2987 and is now being
collected by Time Warner and Charter in accordance with their state franchises.
Mountain Shadows has agreed to these terms. An amendment (Exhibit "A") is proposed
to the current Agreement to reflect the addition of the PEG support fee as well as a 5 year
extension to their local franchise. This Agreement will expire December 31 st, 2012.
FINANCIAL IMPACT
None by this action. The additional revenue from the PEG support fee from the Mountain
Shadows franchise will generate a nominal amount of additional revenue to the City
annually. The PEG revenue was anticipated in the FY 07-08 budget, and is being used to
offset the cost of the annual payment to CSUSB for Channel 3 equipment.
RECOMMENDATION
Adopt resolution.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AMENDING THE LOCAL CABLE FRANCmSE
AGREEMENT WITH STUBBLEFIELD CONSTRUCTION dba MOUNTAIN
SHADOWS CABLE TV SYSTEM AND RATIFYING ALL ACTION PRIOR TO
JANUARY 2, 2008.
WHEREAS, 'Stubblefield Construction dba Mountain Shadows Cable TV System
(hereinafter "Mountain Shadows") is duly authorized to operate a cable television system in the
City of San Bernardino pursuant to Franchise Agreement granted by the City of San
Bernardino; and
WHEREAS, Mountain Shadows has requested that the Franchise it holds to provide
cable television service in the City of San Bernardino be renewed; and
WHEREAS, the Franchise rights granted under the respective Franchise Agreements
expired on December 31, 2003; and they were renewed by Resolution No. 2004-18 on January
20, 2004; by Resolution No. 2004-249 on August 2, 2004; by Resolution No. 2005-14 on
January 24, 2005; by Resolution 2005-236 on July 18, 2005; by Resolution No. 2006-1 on
January 9, 2006; by Resolution 2006-173 on June 19th, 2006 and by Resolution No. 2006-441
on December 18th, 2006; and
WHEREAS, with the passage of AB 2987, the Digital Infrastructure and Video
Competition Act of 2006, Time Warner Cable and Charter Communications have entered into
State Franchise Agreements, effective January 2, 2008; and
WHEREAS, Mountain Shadows decided to not enter into a State Franchise; and
WHEREAS, the City is willing to arnend the current Franchise to be consistent with
the provisions of AB 2987 and to extend the terms of the agreement, dated January I, 1999, to
December 31, 2012, if Mountain Shadows agrees to abide by the terms and conditions of the of
the existing Franchise during any such extension.
No, 10
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AMENDING THE LOCAL CABLE FRANCmSE
AGREEMENT WITH STUBBLEFIELD CONSTRUCTION dba MOUNTAIN
SHADOWS CABLE TV SYSTEM AND RATIFYING ALL ACTION PRIOR TO
JANUARY 2, 2008.
NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager of the City of San Bernardino is hereby authorized
and directed to execute on behalf of said City, Amendment No. 1 to the Cable Franchise
Agreement with Stubblefield Construction dba Mountain Shadows dated January I", 1999, to
operate a cable television system in the City pursuant to the City's Municipal Code, which is
attached hereto, marked Exhibit "A", and incorporated herein by reference as fully as though
set forth at length.
SECTION 3. The authorization to extend the above-referenced agreement is rescinded
if the parties to the agreement fail to execute it within sixty (60) days of the passage of this
resolution.
SECTION 4. That the implementation date is January 2, 2008; therefore, any action
taken between January 2, 2008 and the adoption of this Resolution is hereby ratified.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AMENDING THE LOCAL CABLE FRANCHISE
AGREEMENT WITH STUBBLEFIELD CONSTRUCTION dba MOUNTAIN
SHADOWS CABLE TV SYSTEM AND RATIFYING ALL ACTION PRIOR TO
JANUARY 2,2008.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Conunon Council of the City of San Bernardino at a
meeting thereof, held on the
7 _day of
, 2008, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ABSENT
ESTRADA
BAXTER
BRINKER
DERRY
KELLEY
JOHNSON
MCCAMMACK
City Clerk
The foregoing resolution is hereby approved this
day of
2008.
Patrick J. Morris, Mayor
City of San Bernardino
Approved as to form:
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EXHIBIT "A"
AMENDMENT NO. 1 TO THE
CABLE FRANCHISE AGREEMENT WITH STUBBLEFIELD CONSTRUCTION dba
MOUNTAIN SHADOWS CABLE TV SYSTEM
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8 remain in full force and effect.
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13 By:
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Approved as to form:
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"8.8
Effective Date. The effective date of this Franchise is January 2, 2008,
pursuant to the provisions of applicable law. This franchise shall expire on December 31, 2012,
unless extended by the mutual agreement of the parties."
Section 3. All other terms and conditions contained in the original Agreement shall
IN WITNESS THEREOF, the authorized parties have signed below;
Stubblefield Construction dba
Mountain Shadows Cable TV System
CITY OF SAN BERNARDINO
By:
Fred Wilson, City Manager
,2008
,2008
DATED:
ATTEST:
.f~
es F. Penman, City Attorney
Rachel Clark, City Clerk
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AMENDMENT NO.1 TO THE
CABLE FRANCmSE AGREEMENT WITH STUBBLEFIELD CONSTRUCTION dba
1 MOUNTAIN SHADOWS CABLE TV SYSTEM
2 WHEREAS, the franchise rights granted to Stubblefield Construction dba Mountain
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Shadows Cable to operate a cable television system in the City expired on January 2nd, 2008;
and
WHEREAS, Mountain Shadows has not entered into a State Franchise Agreement
allowable by AB 2987, with the California Public Utilities Commission; and
WHEREAS, Mountain Shadows has requested that the Franchise it holds to provide
cable television services in the City of San Bernardino be renewed; and .
WHEREAS, the parties hereto agree to amend this Agreement which shall be to the
benefit of both parties; and
NOW, THEREFORE, the Franchise Agreement dated January I, 1999, by and
between the City of San Bernardino and Stubblefield Construction dba Mountain Shadows
Cable is hereby amended as follows:
Section 1. Section 4.5 of the Agreement is hereby amended to now read as follows:
"4.5. Grantee shall pay a PEG support fee equaling 1% of Gross Revenue. The fee
shall be collected quarterly and received by the City no later than 45 days after the close of
each quarter of grantee's fiscal year. On a quarterly basis, Grantee shall provide the City with a
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computations. Grantee may recover this amount by billing a recovery fee as a separate line item
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complete and accurate statement verified by a financial officer of Grantee indicating Gross
Revenues for the past quarter, listing every revenue source and depicting gross revenue
on a regular bill to each subscriber."
Section 2. Section 8.8 of the Agreement is hereby amended to now read as follows:
"8.8
Effective Date. The effective date of this Franchise is January 2, 2008,
pursuant to the provisions of applicable law. This franchise shall expire on December 31, 2012,
unless extended by the mutual agreement of the parties."
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AMENDMENT NO. I TO THE
CABLE FRANCHISE AGREEMENT WITH STUBBLEFIELD CONSTRUCTION dba
1 MOUNTAIN SHADOWS CABLE TV SYSTEM
2 Section 3. All other terms and conditions contained in the original Agreement shall
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remain in full force and effect.
IN WITNESS THEREOF, the authorized parties have signed below.
Stubblefield Construction dba
Mountain Shadows Cable TV System
CITY OF SAN BERNARDINO
By:
By:
Fred Wilson, City Manager
DATED:
,2008
,2008
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Approved as to form:
ATTEST:
'7,~
es F. Penman, City Attorney
Rachel Clark, City Clerk
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