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HomeMy WebLinkAbout50-Council Office - ~ - - - - crt" OF SAN BERNARD'~O - REQU~t;T FOR COUNCIL AC'"":ION F'om: Councihior.1an Esther Estrada Subject: 1"lays & Means Cor:uni t tee Report Dept: Council Office Date: December 16, 1987 Synopsis of Previous Council action: Recommended motion: That minutes of Ways & ~leans Committee meeting held Decer.1ber 14, 1987 be received and filed. Signature Contact panon: Phi 1 Arvi zo Supporting data attached: Yes Phone: Ward: 1R4-'120R N/A FUNDING REQUIREMENTS: Amount: N/A Source: (ACCT. NO.) (ACCT. DESCRIPTION) Finance: Council Notes: 1S.0Ul Agenda Ilem No, ~O --- ..... ---.. "- -- - ... L --- --' WAYS & MEANS COMMITTEE December 14, 1987 ATTENDEES: Councilwoman Esther Estrada - Chairwoman; Council- woman Norine Miller; City Attorney - Jim Penman, Deputy City Attorney - Cynthia Grace; Recreation Superintendent - John Kramer; Finance Director - Warren Knudson; Community Develop- ment Director - Ken Henderson; Cabletelevision Coordinator Dean Gray; Animal Control Director - Deborah Biggs; Council Executive Assistant - Phil Arvizo; Mayor's Executive Assis- tant - Richard Bennecke; VARP - David McKenna; Community TV Commissioners - Russell Lackner, Stephanie Congdon; Spirit - George DeLange; The Nelsons and neighbors on Fiscalini issue; The Sun - Pat McGreevey. 1. VETERANS ALCOHOLIC REHABILITATION PROGRAM The Committee recommended waiver of a certificate of occupancy for VARP after receiving oral reports from Mr. Ken Henderson and Mr. David McKenna. Item is to be placed on December 21st Agenda. 2. REVISED RFP FOR OPERATION OF ANIMAL CONTROL DEPART- MENT - Item continued to allow the City Attorney to review the request for proposal. A special meeting of the Committee will be called as soon as the City Attorney completes his review. The urgency is required to issue the RFP on a proper schedule. 3. CATV REPORT - The Committee, after consulting with the City Attorney, determined to hear this item in open session. The attached report was received and discussed. The Committee asked staff to investigate the cost of auditing all cable TV operators in the City and attempt to identify a funding source. The intent is to determine if upgrades as required in the agreement with COMCAST are wfinancially feasiblew and basically review whether the City is getting its fair share from COMCAST and the other operators. Staff will present their report at the Committee's next meeting. 4. ITEMIZED, COMPREHENSIVE REPORT RELATIVE TO SPIRIT BASEBALL COMPARING COSTS PRIOR TO SPIRIT AND COSTS NOW INCLUDING COST OF UTILITIES, SWEEPING, POLICE, INSURANCE, ETC. - Item continued. The Committee requested staff to provide a comprehensive, comparison report showing pre-Spirit expenses and post-Spirit expenses. A report, in writing, -- - i__,_ --- -- .... - - - - answering all the concerns and questions provided by neigh- borhood residents was also requested from Mr. John Kramer. Mr. DeLange was notified, based on the City Attorney's advice, that the Committee could not discuss anything with him based on a letter (attached) from his attorney. Staff will notify the Council Office as soon as the reports are complete. This issue could be discussed at the special meeting when staff is ready. 5. APPROVAL OF AGREEMENT WITH STEINMAN, GRAYSON, SMYLIE, INC. - PREPARATION OF SPACE AND SITE STUDY FOR NEW POLICE STATION - Item continued. The Committee received the attached report from the City Treasurer. Since all depart- ments - RDA and Community Development - had not provided any financing alternatives, the Committee felt that not all the options had been explored. The Finance Director was re- quested to provide a report on budget savings that could be anticipated by mid-year. Meeting adjourned. Res~~IY submitted, r~~ Councilwoman Esther Estrada Chairwoman Ways & Means Committee EE:ej Attch. (3) c'"""'" '-' C I T Y o __ SAN B E R-..,I A R INTEROFFICE MEMORANDUM 8712-101 DIN 0 rr rt...J ':'::/""D -~... .-ADHIN, C,~ 1?7CEC_':' " TO: Jim Robbins, Deputy City Attorney FROM: L. Dean Gray SUBJECT: Request from Commission the Community Cable Television DATE: December 3, 1987 (7277) COPIES: A ----------------------------------------------------------~ Please be advised that during the December 1, 1987 Community Cable Television Commission meeting, a motion was carried to request that the December 14, 1987 Ways and Means Committee ~eeting be closed. It was agreed that this type of session ~as necessary in order that Commissioners and staff might present their evaluation of the October 23 Comcast "Technical and Financial Analysis," and also provide their interpreta- tion of that document. -/1 ( - ~ , "-, ~../ C I T Y 0 F SAN B ERN A R DIN 0 INTEROFFICE MEMORANDUM 8711-106 TO: Jim Robbins, Deputy City Administrator ~Ee'D.~AtlMIN; ~F, 1:37 DEe - 7 ;" FRO~: L. Dean Gray, CATV Coordinator/Community Cable Television Commission SUBJ ECT: Staff report in response to the November 9, 1987 Ways and Means Committee request. DATE: November 30, 1987 (7274) rc6 COPIES: ------------------------------------------------------------- At the November 9, 1987 Ways and Means Committee meeting, the Committee requested a staff report outlining the technical and financial analysis prepared by Comcast Cablevision and presented to the City of San Bernardino, with a brief chronology of events involving Comcast, and finally a list of possible options open to the City. A. SYSTEM BACKGROUND In October 1968, the City of San Bernardino granted a franchise to T.V. Receptors, Inc. (Copy enclosed.) In 1971, T.V Receptors, Inc. was purchased by Teleprompter, which owned and operated the system for the next 11 years. During this time, the cable system was upgraded from a 13-channel capacity to 22-channel capacity. In 1981, Group W Cable purchased the system from Teleprompter. Group W upgraded the system's channel capacity to 29 channels, and installed a microwave distribution system to provide improved signal quality. In June 1986, Comcast Cablevision assumed operational management of the cable system. On December 31st of the same year, Comcast Cablevision acquired ownership of the San Bernardino system. , The rate structure in effect when Comcast Cablevision assumed operational management, in June 1986, was $10.10 per month for basic service. Effective December 31, 1986, after Comcast Cablevision acquired ownership of the San Bernardino system, the basic service rate was increased $2.85 per month for a rate of $12.95 (28%). Effective January 1, 1988, the basic service rate will be raised $2.00 month for a basic cable rate of $14.95 per month (additional 20%). It should be noted that this constitutes a 48% rate increase since the Comcast Cablevision takeover January 1, 1987. Using only 30,000 subscribers as the base, the 48% increase equates to a 1.75 million dollar per year increase, and a 27.94 million dollar increase over the balance of the franchise. It should be further noted that the latest NCTA (National Cable c -~ "-' INTEROffICE MEMORANDUM: 8711-106 Staff report November 30, 1987 Page 2 --.; j Television Association) documents quote a national rate increase average of only 6.7%. It should be noted Receptors, Inc. was a a renewable option of that the original franchise with 25-year franchise terminating in 1993, 10 years, taking it to the year 2003. T.V. with In the most recent transfer of Group Cablevision (accomplished by Resolution Comcast Cablevision agreed to the following W Cable to 86-374-copy terms: Comcast enclosed) , 1. By letter of June 10, 1986, to commence in consultation with the City, an analysis of the cable system's technical capabilities, its customer needs, market condition 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 said resolution (i.e., September 24, 1986). 2. Provided that such analysis demonstrates that an expansion in channel capacity is economically, technically, and financially feasible, Comcast will commit funds for such expansion to be completed no later than early 1993. 3. Comcast will design for expansion of channel capacity to 400 MHz (54 channels). However, Comcast may find that a phased in expansion over time is a more feasible approach. This means that Comcast may upgrade the "plant" to 36 channel initially, then expand to 42 channels or 54 channels as warranted. 4. Within 12 months of Resolution 86-374, Comcast will install and maintain a program origination/insertion point at City Hall. Installation shall include labor, equipment and materials, and will provide to the City the production equipment listed on Exhibit A (enclosed), and Comcast will activate and maintain the program origination/insertion point at the San Bernardino Library. r 5. Upon reaching at least 36 channels of its channel capacity expansion, Comcast has agreed to provide at least one channel without charge for the exclusive use of the City, one channel for education, and one channel for public access. However, Comcast shall continue to provide one channel dedicated to government, public and education access, regardless of the cable system's channel capacity. 6. Comcast agreed that within 6 months of the date of the transfer of control to Comcast Cablevision to reduce channel "sharing" and increase the diversity of programs being offered. ,.... i...- ,"",'''' INTEROFFICE MEMORANDUM~ 8711-106 Staff report Sovember 30, 1987 Page 3 -'" '-" Comcast has agreed to work comprehensive line extension future areas within the City. to use their best efforts to line extension policy within 6 with the City in developing a policy for serving existing and And the City and Comcast agree develop a mutually acceptable months. 8. Comcast agreed to continue a preventative program. 9. Comcast agreed to comply with all provisions of chapter 14.08 of the San Bernardino Municipal Code. maintenance 10. The term of the franchise shall expire December 21, 2003. It should be noted that the analysis was not presented to the City within the 12-month time frame, but was approximately 30 days late. B. SUMMARY OF THE TECHNICAL AND FINANCIAL ANALYSIS OF THE SAN BERNARDINO COMCAST CABLE TELEVISION SYSTEM DATED OCTOBER 23. 1987 OPENING REMARKS The opening letter by James W. Bequette, Regional Vice President, indicates picture quality is only fair to good. He emphasizes the. need for system technical maintenance work, but also indicates that this much needed work will not begin until a final decision is made concerning future plans. Mr. Bequette also indicates that nearly half of their customers are not interested in more channels--if such channels would cost more per month. In closing, ~r. Bequette indicates that Comcast wants to further refine the information gathered before a final decision is made on the technical maintenance upgrade for channel expansion possibilities. He also indicates there will be no course of action until sometime in 1988. EXECUTIVE SUMMARY The Market Survey as referenced states that both cable subscribers and non-subscribers were surveyed. It is again emphasized that the San Bernardino system is providing only fair to good picture quality, and tha~ maior technical maintenance work will be required, and that Comcast is prepared to undertake the project. It states that channel expansion from the current 31 channels (270 KHz) up to 76 channels (550 MHz) is technically feasible; however, additional channel capacity is not necessary. New sources of revenue need to be examined and pursued in insure that capital expenditures could be recouped reasonable period of time. order to over a Capital costs for technical maintenance and channel expansion must be further refined before a final decision concerning the San Bernardino cable system is concerned. - c .....~"'''' - INTEROFFICE MEMORANDUM: 8711-106 Staff report November 30, 1987 Page 4 ...".... INTRODUCTION The statement is made that Comcast has met its obligations and responsibilities as set forth in Resolution 86-374, and submitted a commendable list of accomplishments since the transfer. SYSTEM OPERATING DATA This portion of the report shows 34,000 subscribers living in the cities of San Bernardino, Grand Terrace, Lorna Linda and certain unicorporated areas of San Bernardino county. It cites statistical data "specific" to the City of San Bernardino, but includes in this "specific" information unicorporated areas of San Bernardino county operated as part of this system. The total figure being 58,000 homes serving 31,000 customers. It is interesting to note that the "specific" information needed to define San Bernardino is apparently not available. Comcast offers our citizens 23 channels of basic service, and at further cost, 5 premium services. OPERATING ISSUES The Comcast San Bernardino system currently experiences more vandalism, converter loss, and bad debt than in any other system operated by Comcast in southern California. Statistical data has been provided to validate this statement. It should be noted that' as in most businesses, there are normally two options available for a business to compensate for financial drains such as those mentioned above. The first option would be to raise prices to compensate for losses; and the second option would be to analyze the discrepancies and through a sound managment program to reduce those losses. C. TECHNICAL EVALUATION The technical analysis of the cable system examines the two primary components involved: 1) head-end and microwave receiver sites; 2) cable plant, trunk distribution and drops. The methodology and results appear to be an accurate representation of the system's condition. It is again stressed that picture quality is only fair to good. The components that make up the system show a potpourri of manufacturers and specifications ranging from 220 MHz to 450 MHz. It again states that channel capacity expansion up to 550 MHz is technically feasible. It should be noted that all three microwave receive sites are presently capable of distributing 400 MHz (54 channels). More than 50% of the cable, both aerial and underground, will soon need replacement. Many trunk amplifiers need to be replaced, and, in fact, many have specifications less than current channel capacity. Approximately 20% of directional couplers, and line splitters need to be replaced; and approximately 80% of the existing directional taps (feeding residences) need replacement. Approximately 50% of the power supplies need replacement and finally, the strand itself (infrastructure) is 20 years old and accounts for increased 1"........ 10,... c --., -......I .J !NTEROFFICE MEMORANDUM: 8711-106 Staff report Sovember 30, 1987 Page 5 ~aintenance expenses. CHANNEL CAPACITY EXPANSION The report indicates that the system does not use channels A-I and A-2, and alludes to the fact that possibly a FCC waiver could be granted allowing use of these channels. It should be noted that channels A-I and A-2 are restricted by the FCC because of the normal conflict involving aeronautical frequencies. The closing statement repeats that the system could be modified or rebuilt entirely to expand channel capacity to a maximum of 550 MHz. D. ~~RKET SURVEY The report indicates again that both subscribers and non- subscribers were surveyed, and that most subscribers are satisfied .ith the existing program line-up. It further states that approximately 50% of the subscribers do not want to pay additional fees for additional channels. It states that customers and potential customers do not want to spend additional money for additional channels. It further states that 50% of those people .ho are not subscribers do not expect to subscribe in the future. The cost increases indicated in the survey are as follows: $2.00 per month increase for 35 channel expansion: $3 -$5 per month increase for 42 or 54 channels. The market survey explains how randomly selected "scientifically." of numbers to assure homes in Completed interviews were conducted of these were existing subscribers. 1,374 telephone numbers were They used local working blocks all areas would be included. with 400 households. Only 200 E. FINANCIAL ANALYSIS The report states. that the cable system requires substantial remedial work, and again states that channel capacity expansion is technically feasible. It indicates little interest among subscribers and non-subscribers in increased channel capacity, if increased rates were involved. The need to consider rising programming costs 'is mentioned twice. The report states that the needed repair or replacement of equipment under a technical .aintenance plan would not change the channel capacity. The total estimated technical maintenance needed to put the San Bernardino system in proper working order is $3 million. All new cable plant and equipment installed by Comcast has been ~50 MHz, 60 channel capable. In closing the financial analysis, Corncast states that construction of a 450 MHz system would require a rate increase of almost $5.00 per subscriber per month in addition to cost-of- living and programming cost increases. The financial analysis assumed a 15% return on investment over a 12-year payback period. c ,P" V INTEROFFICE MEMORANDUM: 8711-106 Staff report November 30, 1987 Page 6 "." .-...) -,.,j F. FUTURE PLANS The report states that City representatives expressed much interest ln having Comcast upgrade the system to 450 MHz specifications, and that Comcast must now reconcile conflicting findings and desires. It is clear that there is no current or reasonably foreseeable market demand in San Bernardino for additional channel capacity. Furthermore, the subscribers and non-subscribers are unwilling to pay higher rates to offset capital costs. However, Comcast believes that they would be short-sighted to invest $3 million for a major technical maintenance project without considering and re- considering every aspect of their decision. During 1988, Comcast engineers are planning three activities which ~ill be completed before final decisions are made. 1. Design of the Cable System to 450 or 550 MHz This engineering work would include preparation of all maps and identification of equipment and materials needed for a rebuild of the cable system. 2. Planning Technical Maintenance Project This project will include the preparation of a detailed" capital budget outlining the costs associated with bringing the San Bernardino system to an accepted level of quality. 3. Continued Preventive Maintenance and Plant Extensions Currently all plant extensions and all new components installed are 450 MHz capable. While the engineering department is engaged in the above described tasks, marketing professionals will be evaluating new products and services which may provide new sources of revenue. In the third quarter of 1988, Comcast's local management will prepare and submit its 1989 budget for review. Before spending significant capital monies, Comcast will revisit the channel capacity expansioK issue. The closing statement of Comcast's report is that they are proud to serve the San Bernardino community. They promise to meet the City's requirement that they upgrade the system's channel capacity, if technically and economically feasible, no later than 1993. They believe that continued research and analysis during the next 12 months will ensure that their decision will be both technically and financially prudent and in the best interest of their customers. STAFF SUMMARY After close consideration of the Comcast document by the Community r~~ (- IS"TEROFFICE MEMORANDUM,-, 8711-106 ........ S~3ff report ~ovember 30, 1987 Page 7 '"' v ,"'" 1 ~ .. Cable 7elevision Commission and myself, several important issues need to be a;:ldressed. Since ~~e transfer of the Group W franchise to Comcast on December 31, 1986, it has been the primary concern of the City that Comcast Cablev:sion commit to a 54-channel Caoable system that offers good to excellent picture quality on a consistent basis and at a fair price. Comcast went into great detail in describing market survey results, technical inferiorities in their system, and the fact that approximate- ly $3 Eillion dollars must be invested just to bring the existing 270 MHz sys~em up to an acceptable quality level. Comcast failed to answer the question of the capital cost surrounding 400 MHz technology or what part t~e $3 million investment would play in achieving 400 MHz technology. The only reference to capital cost in the document is the need for an additional $5 per month per subscriber for 54 channels of progra~ing. It should be pointed out that during transfer negotiations the City agreed that 54 oroorammed channels are probably not needed at this time. However, 54 channel Caoacity is requested with a ~inimum of 36 channels programmed. Because the newly granted transfer will take our City into the next century, we feel this is the absolute minimum channel capacity that we can accept, that would guarantee our citizens all current and future cable attributes. The Comcast document continually references, both in specifications and in survey results, 35 channels. We feel there are several reasons why Comcast refuses to use 36 channels as the minimum guideline. 1. Our transfer agreement stipulates that upon reaching 36 channels, Comcast is obligated to provide the City with 1 channel for public access, 1 channel for government access, and one channel for edUcational access. At the present time, all 3 are shared on one channel. 2. Also, after reaching 36 channels, Comcast is obligated by the Cable Policy Act to provide leased access to the Citizens. The City cas always specified 36 channels as the minimum. We also found the market survey to be obscure in certain areas. In several places in the survey the numbers and percentages listed did not equate to what was projected. In one particular instance a fractional representation (two fifths) was Used to show the number of subscribers not interested in channel eKpansion. We find it interesting that this 40% figure was the only one in the survey not listed as a decimal percentage. It is also interesting to note that out of the approximate 31,000 Subscribers, only 200 cable subscribers representing 2/3 of 1 % were polled. If one were to consider the percentage of error (+/-5%) built into the survey, the possiblity exists that the percentage of SUbscribers wishing channel expansion could be increased. rhe Comcast report references Exhibit A of the Transfer Document, and ;tates that most of the requirements have been met. Although the 'quipment listed in Exhibit A has been discussed with Comcast and :ertain changes agreed upon, we seem to be at an impasse concerning the ulfillment of this agreement. The initial attitude of Comcast 1_ - -"'...... -- '-' INTEROFFICE MEMORANDUM: 8711-106 Staff report November 30, 1987 Page 8 ~ --' --' '-' concerning equipment inventories and insertion point completion was one of cooperation and "time is of the essence"; however, as time goes on that attitude seems to be changing in that much of the equipment has yet to be wired for operation. To our knowledge, the city Library insertion point has yet to be completed and functionally tested; and the insertion point originating at City Hall has yet to be refined to the point that stable audio and video is available on a regular basis to the subscribers. We were extremely disappointed to note that the above-mentioned equipment and insertion concessions offered by Comcast as a part of the transfer appeared in letter form as a basis for the upco:ing 20% rate increase. (See enclosed letter, received 11-4-87.) Before considering recommendations, the Community Cable Television commission wishes to express its concern over the inconsistencies between the Comcast Report and the Transfer Agreement. Of particular concern was the fact that the Commission was not allowed to participate in the design of the market survey, and there are several concerns as to the methodology used by the ELRA group. It is therefore hoped that the Report will not be the only basis on which Corncast is to determine the financial feasibility of the promised 54 channel expansion. STAFF RECOMMENDATIONS We would first suggest that the Mayor and Common Council invite Comcast representatives to a public Council meeting to explain and clarify the docu:ent as well as fill in some of the blanks, such as anticipated capital expenditure for 54 channel capable technology, and what part the $3 million upgrade plays in this formula, verify $5/month rate increase alluded to, and declare their intent. Because the financial feasibility appears to be the only stumbling block with Comcast, the Mayor and Council need to know that the City of San Bernardino has total legal authority to not only audit Comcast's financial books and records, but also has the right to inspect all property, maps, and records that would perhaps put the City on firmer ground when dealing with Comcast concerning the feasibility issue. To our knowledge, the City of San Bernardino has never exercised its right to audit, or even validate franchise fee receipts. ., After much review, the facts stated in the Comcast document indicate that should Comcast consent to make our City 54 channel capable with good to excellent service, the cost to the subscriber for basic service will total $19.95 per month, barring any more "cost of living, or programming" increases. Not only is this figure at least 20-25% higher than all of our neighboring cities with similar technology, but it is quite possibly the highest basic service rate in southern California, if not the continental United States! It is obvious that since Congress de-regulated cable television rates early this year, and municipalities no longer have th~ authority to exercise rate control, that the only viable option to ensure consumer protection, is to invite competition by soliciting RFPs in an attempt to find an operator that would be willing to give our citizens not only modern reliable state of the art - - - - L, ,-, ,~ ,~ , INTEROFFICE MEMORANDUM: 8711-106 Staff report Sovember 30, 1987 Page 9 capabilities but at a fair price. Remember that Congress also dictates that there is no such thing as an exclusive franchise. By exercising this option the City would of course do away with the need to enter in to lengthy debates with the present operator. Another option to high rates and inferior quality being reviewed and exercised by more and more municipalities is the concept of the municipal cable system. Although this is often a very costly endeavor initially, it is hard not to become mezmerized by the profit implications. One common operating ratio is 60\ of gross receipts go to operations, and 40\ of the gross receipts serve debt retirement and eventual profit. If you were to consider a hypothetical subscriber base of 30,000, at a rate of $15 per month, you see that this equates to $450,000 per month. Add to this figure $8 per month (average premium SUbscriber) you end up with approximatley $690,000 per month gross receipts. As you can see, the above mentioned options tend to be somewhat aggressive; it is indeed unfortunate that such options need to be discussed. However, short of no action at all, the options become limited in nature, and harsh in reality. However, the Mayor and Common Council must be aware of their responsibility to regulate the cable operators and to protect the interest of San Bernardino cable subscribers. Because decisions made now could very well effect our citizens into the next century, consideration must be given to the abilities of our cable systems to provide the many high-tech options available today , as well as guaranteeing an infrastructure capable of offering future technology. ENCLOSURES: Resolution 86-374 (Transfer Agreement) Ordinance No.l 2864: T.V. Receptors, Inc. Franchise, dated 11-20-87 Ordinance No. 2948: Extends period of T.V. Receptors Franchise Letter from Comcast regarding rate increase effective January 1, 1988 Multichannel News November 30, 1987 articles as follows: -Niceville, Fl, Overbuild Plan Hinges on Courts' Decisions" -TCI Plans to Pro~ose Overbuilding NJ System Run by N.Y. Times" -Experts See Short-Term Changes in System Sales. -FCC To Seek Public Comment on Cross-Ownership" - c /"'",..... V """ """ -, ' ~ ---' - , RESOLUTION NO. 86-374 RESOLUTION OF THE CITY OF SAN BERNARDINO CONCERNING OF THE CABLE TELEVISION SYSTEM FRANCHISE FROM GROUP 70 CC~CAST CAEL~VISION CORrORATION OF CALIFO"~}~. THE TRANSFER W CABLE, INC. WHEREAS, Group W Cable, Inc. throuqh 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 operatinq 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 lO, 1986 (attached hereto) in response to the City's request, to commence, in consultat:on with the City, an analysis of the cable system's technical capabilities, its customer needs, mal';:et conditions and the capital costs req'lired to expand the system's C~c.:-:r.cl capacity, ;,:-:d to complete this study and submit it to tJ,e City cne J'ear from the date of this resolution; and -1- - c r,", \...i ,.--...... :) -..,../ WHERE~S, 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 WHERE~S, 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 WHERE~S, 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- - c c '~ .) WHEREAS, Comcast has aqreed, 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 chaMel "sharing" and increase the diversity of programs being offered to subscribers by utilizing the programminq 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 paat, and the City and Comeaat 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 BerI)ardino Municipal Code., 4s modified by the Cable Communications Policy ~ct of 1984, and as clarified by the attached Memorandum 'of I1nd'erstandlng which 'r.'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 S percent of gross -)- c c " ...""'\ ...,J --' 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 tr&nsferred franchise shall expire on December 31, 2003, NOW, THEREFORE, THE MAYOR .1.ND THE COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO HEREBY ratify the transfer of the cable television system franchise of Group W, GWe 78, Inc., to Comea.t Cablevision Corporation of California, subject to compliance ~erei?af~er 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 a. clarified by the attached Memorandum of Understanding incorporated by reference herein, and all the aqreements reflected in ~his Resolution and its ~ clauses. This ratification, and the agreements contained in this Resolution and the Memorandum of Understanding shall be accepted by & letter from the President of Comca.t Cablevision Corporation of California to be filed with the City Clerk of the City of San Bernardino within 30 day. from_:~~ adoption of this Resolution. -4- ,,''', , ,/ """"-..,, '-- I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at the adjourned reqular meeting thereof, held on the "nrl day of SeDt~mh~r , 1986, by the following vote, to wit: Estrada. Reilly. Hernandez. Marks. ",,,,,,1, Frazier. Strickler AYES: councilmembers NAYS: i:one Jl.BSENT: Non~ ~.4'?/~41/ City/Clerk The foregoing resolution is of September ,l986. ..;,'~.L day ~pproved as to form: ~ //_~ 0 ," N~~~ Ci ty ~ orney -5- ("'""'- '-' '- ) PEL ...;...... ),., t....... 2 -d/ J,',;(,'"":,,,' ~RDIXA~CE ::0. ~ ,-<;.... ~ A~ ORilI?<A:iCE OF THE CiTY OF SAN BER.\ARDr::6 GRAdri~~ A FRA::C,c !5E TO T. V. RECEPTORS, I~C. THE MAYOR AND Co.'l:10N COL"C IL OF THE CITY OF SAN EER..'lAJQ!::O DO ORDAI~ AS FOLLOWS: 3 SECTION ONE: DEFINITIONS. For the purposes of this ordi~~i~~, the following teLms, phrases, words, and their deriva- tions 5;'.::.11 ~ave the meaning gL'en herein. When not inco:1s1ste:1: \;ith (.-.~ ':::1text, \.'ords used in the present te:1.se include t~e futu:e, ~o~ds in the plural nu~)er include the singular nu~~er, and \:c:cs 1:1 the sii1gular T!l.;::i.be: include the plural number. P:ovis~o~s of this ordii1ance s~all be construed in accord3nce \;i~~ t~E Laws of t~e State of California. (a) "City": The Cic:: of Sa:1 Bernardino, a Cluni:i?.:ll corpO~!:~~:1 of the State of Cal:fori1ia, in its present ip.:or- pora~e: :o~ or in any late~ reJrgani:~d) consolidated, enlarged or re.i:1:orporated form. (b) "Council": The ~resent governing body of the? C~~y or a~y ~~~ure board constituti~1 the lElislative body of the Ci~~.. (c) "Franchise ProF-:_.cy": All property retained by t>e Gran:e! in a street under aut~Q:ity of this franchise. (d) HGrantee": The ?erson ,[" corporati.on to Hho::!. 0:- which r'r.:s franchise is grantee by the Cou:1ci.l, and the la'..Jful successor or assignee thereof) and \..1ho or \o,'hich has filed \:ith che C::y an acceptance and bone, refe::ed to in Sections 3 a~c 13. (e) "Street": The sJrface of, and the space above b.lo~ a~y public street, road, ~ighway, freeway, lane, aIle" court) s:dewalk, parkway, drive or spa~e allocated for publ~~ uti lity e.asements, now or herec.~ter existing as such with!" tt~C' Cicy. (f) "Closed Circuit System": Coaxial cables, "a\'. guides, ether conductors or other closed channels for provi.1i:1; (' - ,/ 2 entertaini:tg, educational, info~ational or intelligence material) visual, audible or other, by radio frequency, electric i~pulses 3 or radio frequency electromagnetic waves passing over, on, in 4 or through such facilities, excluding any general broadcast of radiant energy, for consideration or as a public service to Subscribers, at the selection of the Granteee. (g) "Subscriber": Any person or entity receiving for any purpose Closed Circuit System signals or other Closed Circuit ~ 6 7 8 9 System transmission. 10 (h) "Operating Licensee": Any person or entity, conduct- ing all or part of a Closed Circuit System under license of, or transfer from, t~e Grantee, pursuant to Section 6 (c). 11 12 13 (i) "Total Gross Receipts": A~:: a:ld all compensation and 14 other considerati0n in any form whatever and any contributing grant or subsidy received directly or indirectly by Grantee and its Operating Licensees from Subscribers in payment for Closed Circuit System signals or other Closed Circuit System trans- mission received within the City. Tot3l Gross Receipts shall 15 16 17 18 19 also include any a:ld all revenue where";er or however derived, 20 from any person or entity, whether loc ...:ed inside or outside 0: 21 City, as consideration for the ?erforr.1nce of advertising, pl.J.:,t 22 protection or co~~nication services or any other services of 23 any type or nature whatever by the use of all or any part of a Closed Circuit System located Within the City, other than ser.- ices to such person or entity as a Subscriber. (1) For the purpose of deter~ining Total Gross 24 25 26 27 Receipts, co~pensation or other consideration re- ceived by an Operating Licensee of the Grantee shall be deemed to have been received by the Grantee. 28 29 30 (2) For the purpose of computing that portion of Total Gross Receipts which is obtained as consideratio.! 31 32 -2 - - ........ - , "',...~' / 'I II 2 I, 3 :1 " , s I I 6 II 7 I :1 s il 9 II I 10 II 11 12 I , 13 I I" I I 15 I 16 I 17 18 I, I I~ , I 20' I , 21 I n' 23 2. 25 26 77 28 291 30 31 32 for service~ o~her than tv a person or en- tity as a Subscriber, an:: paY::le:l: of cO::lpensation or other con!ideratio~ rece:ved by the Grantee for such services sha~t be fairly and re~sonably allocated by Gra~tee and s~all be dete~ined by the ratio that the r€\"!nue obtained for services from Subscribers wit~in c~e City bears to the revenue obtained for services from Subscribers performed both inside and outside of the City by the use of all Closed Circuit Systems of the Grantee. (3) Total Gross R.cei?~s shall not include any taxes on the services furnished )y the Grantee imposed directly on Su)scribers ,y any :ity, state or other goverr~ental unit and collected by the Grantee for suc~ ;~vernoe1tal unit. SECTION TWO. F~~CHISE G~~,.. The fraochise hereoy graote: by the City authorizes T. V. ~CEPTORS, INC., subject to t~e provisions herein conrainec, :~ =~6age in the business 0: operating and providing a Closed Circl .t System in the C!:y, and for that purpose to erec:, i~s:al1, construct, repai~, replace, reconstruct, naintai~ and re:~in in streets suc~ poles, wires, cable, conduc:o=s, d~:ts, conduits, vaults, =~~. holes, amplifiers, appliances, .?ttacx.~!"l.ts, and other pr~p~r:.:: as may be necessary and appu=te~ant to a Closed Circuit S;St~~, and, in addition, so to use, o?e~ate a~d provide similar properties rented or leased fro~ otber perso~s, f:~s, ~: corporations, for such purpose. SECTION THREE. DVRATIO~ Of G~l. This franchise sn~ll o~ effective on the thirty-first (31st) day after the publioatioo -3- "-- -' ~-... ......., ",,,-" ~ 3 of tnis ordinance, I'rovided the Crantee has paid Lt. the City the sum of one hundred dollars ($100,00) and, has filed with the ~ity. within twe~ty (20) days after such date of publica- ,ion. a v~itten instr~ent, adcL.essed to the Co~ncil. accept- ing this franohise and agreeing to comply with its provisions. This franchise shall expire twenty-five (25) years after the effective date hereof, unless sooner terminateJ by the City Coundl, in the evenC the Council shall have found, after notice and hearing, that: (a) the Grantee has failed to CO<!lply with any material provisions hereof; or (b) any provision hereof has beoome invalid or unenforceable, and the Coun,il finds chat su.:h provision constitutes a consideration material to the grant of this fran'hise; provided, ho,",ever, that the Grantee shall be given at least thirty (30) days' nocice of any termination pro: eedings. SECTION FOUR: FRANCHISE PAYl1ElrrS. 4 s 6 7 s 9 10 11 12 13 14 15 16 17 lS (a) By ics accepcance of this franohise, che Crantee agrees to pay co the City, annually, in lawful money of che United Staces, three percenC (37.) of the tocal gross receipcs collected or received, or in any manner gained or derived in each calen- dar year, or portion thereofJ during the term of chis fran hise, by the Crancee or ics Operating Licensees from the properties, operacions, and business referred to in Section Two. In any year, or portion thereof, during which payments under chis section amounC co less than five hundred dollars ($500.00), Crantee agrees co pay che City che minlJ:l\D amount of five hundred dollars ($500.00). (b) Ie is hereby found as a matter of fact, and it is mutually agreed by the Cicy in enacting this ordinance and by the Grantee in accepting che franohise granted by it, thac there is no feasible method available for determining che portion of the 19 20 ~I 22 23 24 2S 26 27 2S 29 30 31 32 -4- c c " -,./ 2 I annual Total Gross Recci~~s of the Grantee which arises :rom the use, operation or possession of this franchise and the por- tion which is attributabl~ to other sources. It is, accordingly, ordained and agreed that the portion of Cranteefs annual Total Gross Receipts arising froc Sources other than the use, opera- tion and possession of ti:is franchise is negligible and impos- sible to ascertain in any economical manner, and for that rea- son, Grantee's Total Gross Receipts shall be deemed to arise from the use, operation and possession of the franchise granted by this ordinance. (c) The payments required by this section shall be paid annually and be due on or before the last day of March of each succeeding year. Payments shall be accompanied by a duly veri- fied statement showing in detail the Total Gross Receipts re- ceived by Grantee during the preceding calendar year from the properties, operations, and business referred to in Section T~o. The Grantee shall at all times maintain accurate and complete accounts of all revenue and income arising out of its opera- tions under this franchise. Grantee's books, accounts and rec~ ords shall at all times be open to ins?ection and exacination by authorized officers, agents and employees of the City and s!-aH b~ ke!'t j,n such form as to enable such authorized offi- cers, agents and employees to ascertain the amounts due the City and determine any other facts relative to operations under this franchise. The right is reserved to the City of audit and recomputation of any and all &Counts paid under this franchise and no acceptance of any payment shall be construed as a ~olc'se or as an accord and satisfaction of any claim the City may havo for further or additional sums payable under this franchise or for the performance of any other obligation thereunder. In the event of its holding over after expiration or other te~inatio~ 4 5 6 7 S 9 10 11 12 13 14 15 16 17 18 19 20 21 22 21 24 25 26 27 28 29 30 11 32 -5- c c '"' ,....; J of this franchise, the Grantee sha:l ren~er co~~~~s,~ion ?ursu- 3 ant to the provisions of this franchis~ until :he effective date 3 of a new franchise. 4 (d) Perfomance of rhe duty of rendering co::>pensa,ion 5 under this franchise and of every o~her obliga::~n thereund~r 6 shall not be excused by the fact that the Grantee or any of its T operating Licensees may purchase, lease or uti:ize, under any ar- I rangeoent whacsoever, any Closed Cireui: SysteQ ~quipment or fa- 9 cilities or any ocher equipment or facilities req~ired by a 10 Closed Circuit System from any public utility or other person 11 or entity. The Grantee agrees that its obligations under this 12 franchise, including the duty of payme~t of com?e~sation there- 13 under, shall apply to all such equi?r:-e:-.:: and facilities so pur- 14 chased, leased or utilized, whether St;::'!1 equipr;e~,= or faC"'ili- 15 ties constitute all or any part of the Closed Cir::uit System 16 operated within the City by the Gran,ee or its Opera,ing 17 Licensees. 18 SECTION FIVE. SLltRE,uER OF O:HER FRA~C"ISES. 19 (a) By its acceptance of this f:a~chise grant or of an as- ~ signment thereof, the Grantee agr~es t~a: upon subsequen~ addi- 21 tions of areas to the City either by ~~~exation. consolidation 22 or otherwise, all Closed Circuit Syst€~ franchis!s of the 23 Grantee in such areas are thereby surr~ndered; provided, ho~';cver. ~ that should this franchise be declared invalid Ot be ren~ercd ~ inoperative by a final judgment, decree or order of any cour, of ~ competent jurisdiction, the franchises thereby sarr~~dered shall n thereafter have the same force and efZect as i: such surrend~r 21 had not occurred. 29 (b) By its accep,ance of this ftanchise gran, or of a~ as- ~ signment thereof, the Grantee agrees tha, any C:osed Citcuit 31 System facilities and appurtenances in streets. ~~ich are SU~5~- 32 quently acquired by the Grantee or which were au'~orized by -6- ,....... '-' - - ...."., "\ j '--' franchises surrendered pur<uant to the provisions of this section, " Z are thereupon authorized by and shall be subject to the provisions 3 of this franohise. 4 SECTION SIX: LlMITAIlONS ON !;RANr. ~ (a) No privilege or exemption is granted or conferred ,y this fran:hise except those specifically prescribed herein. (b) Any privilege claimed under this franohise by the Crantee in any street shall be subordinate to any prior lawful occupancy of the streets, or other public property. (c) This franchise is a privilege to be held in persqnal trust ~y the original Crantee. It cannot in any event be trans- ferred in part, and it is not to be sold, transferred, leased, assigned, or disposed of as a whole, eicher by foroed sale, merger. consolidation. or otherwise. ~i:hout prior consen~ of the City expressed by ordinance, and then only under such conditic~s as lIlay be therein prescribed; provided, however that no such consent shall be required for any trans:er in trust, lIlortgage, or other hypothecation, as a whole, to secure an indebtedness. Prior consent of the City expressed by ordinan:e shall be required in the event th e Grantee issues licenses for operatio~s under this franchise to Operating Lice~sees and such licenses shall be subject to all the conditions prescribed in the ordi- nance granting consent and the provisions of this franohise. Nothing contained herein shall relieve the Grantee from any of its duties and obligations under this franchise. (d) Time is of the essence of t~is franchise. The Grantee shall not be relieved of its obligation to comply prOQ?tly with any of its provisions by any failure of the ~ity to enEor:e prompt compliance. (e) Any right or power in, or duty 1Iopressed upon, any officer. employee, department, or Board of the City, is subjec: 6 7 I 9 10 II 12 13 14 I~ 16 17 II 19 :zo 21 22 23 24 2S 26 27 21 29 30 31 32 -7- /,-",," \..J' - "......... :) :) "--" 2 " to transfer by the City to sny other officer, employee de?artment " or Board of the City. (f) The Grantee shall have no recourse whatsoever against t~e ~ity for any loss, cost, expense or damage, arising out of any provision or requirement of this franohise or its enforc~.nt. (g) Grantee is subject to all requirements of the City J 4 5 6 7 ~narter and of all ordinan2es, rules, regulations, and specif:- cations of the City, heretofore or hereafter enaoted or establis~ec including, but not limited to, those concerning street work, street e~cavations, use, removal and relo~ation of property _ within a street, and other street work. (h) This franohise does not relieve the Grantee of any obligation involved in obtaining pole space from any department of the City or from others maintaining poles in streets. . SECTION SEVEN: RIGHTS RESERVED TO CITY. S 9 10 11 12 13 14 15 16 (a) There is hereby reserved to the City every right and power which is required to be herein reserved or provided by any ordinance of the City, and the Crantee by its acceptance of this franohise agrees to be bound thereby and to comply with any action or requirement of the City in its exercise of any su=h right or power, heretofore or hereafter enaoted or established. (b) Neither the granting of this franchise nor any of C"e provisions contained herein shall be construed to prevent the City from granting any identical, or similar, franohise to any person or corporation other than the Grantee. SE,:'!ION EIGHT: TIME OF PERFORMANCE. Installation of a Closed Circuit System shall be commenced within two (2) years after the effective date of this franchise, and extensions and service, where practical, pursued with due diligence thereafter. Failure to so commence and offer service shall be grounds for termination of this fran:hise. 17 IS 19 20 21 22 23 24 25 26 27 28 29 30 31 32 -8- c - - ~ .. " """ ..../ ..I' SECTION NINE: LOCATION OF F~~~CHISE PROPERTIES. Franchi$e 1 property shall be constructed or installed in streets only at 3 such locations and in such manner as shall be approved by the 4 Superintendent of Streets, acting in th~ exercise of reasonable 5 discretion. Construction or installation of franchise property 6 in all other public places shall be subject to approval of and 7 regulation by the City Council. S Grantee shall not provide service to any person, firm or 9 corporation within the City if service is then immediately avail- 10 able to such person, firm or corporation pursuant to another -and 11 different franchise granted by City. Service shall be deemed to 12 be immediately available to a person, firm or corporation if, at the time grantee desires to provide service to such person, firm or corporation, there exists a transmission line belonging to an entity franchised by grantor, along a property line, or a street or alley adjoining a property line, of the property to which service is sought to be established by grantee; except, however, that in the event the entity owning the line along, or adjoining, the property line of the property to which grantee seeks to establish service fails to provide such service within thirty (30) days after receiving written notice, sent by registered or certi- fied mail, requesting such service, the grantee may provide such 13 14 IS 16 17 18 19 20 21 ~2 23 service. 14 2S SECTION TEN: REMOVAL OR ~~~~ OF FRANCHISE PROPERT,. (a) In the event that the use of any franchise property is discontinued for any reason for a continuous period of twelve (12) months or that franchise property has been installed in any street without complying With the requirements of this franchise, the Grantee shall promptly remove from the street all such property other than any which the Street Superintendent may per- mit to be abandoned in place. In the event of any such removal, the Grantee shall promptly restore the street or other area ("O~ which such property has been removed to a condition satisfactory to the Superintendent of Streets. 16 17 11 19 30 31 31 II -9- c - c ........ ~ <'""''\ ...._1 (0) Franchise property to be abandoned in place shall b. 2 abandoned in such manner as the Superintendent of Streets shall 3 prescribe. Upon permanent abandonment of any franchise property · in place, the Crantee shall submit to the Superintendent of 5 Streets an instrument, satisfactory to the City Attorney, 6 transferring to the City the ownership of such property. 7 SE :TroN ELEVEN: ::HANGES REQUIRED BY PUBLI': lMPROVEMEm'S. a The Crantee shall, at its expense, protect, support, te~orarily disconnect, relocate in the same street, alley, or public place, or remove from any street, alley or public place, any franchise property when required by the Superintendent of Streets, by reason of traffic conditions, public safety, street vacation, freeway and street construction, change or establishcent of street grade, installation of sewers, drains, "ater pipe~, power lines and tracks or any other type of structures or improvements by governmental agencies when acting in a governmental or proprietary capacity, or any other structures or public improve- ments; provided, however, that Grantee shall in all such cases have the privileges and be subject to the obligation to abandon franchise property in place, as provided in Section Ten. SEctION mELVE: FAILURE TO PEiV""'ORM STREET I;ORK. Upon 9 10 11 12 13 14 15 16 17 IS 19 20 21 22 failure of the Grantee to cOlllplete any work required by law or by the provisions of this franchise to be done in any street, within the time prescribed and, to the satisfaction of the Superintendent of Streets, the Superintendent of Streets may cause such work to be done and the Crantee shall pay to the City the cost thereof in the itemized amounts reported by the Superintendent of Street. to the grantee, within thirty (30) days after receipt of such itemized report. SEctION THIRTEEN: FAITHFUL PERFORMAM::E BOND. (a) The Crantee shall, concurrently with the filing 0: an acceptance of award of this franchise, file with the Council, a~1 2J 2-4 :IS 26 :n 21 29 30 31 32 -10- c /""", \.,..; ,""'" .....,) :) at all limes thereafter maintain in full force and effect for th" 2 term of this franchise at its expense, 8 corporate surety bond, in 8 c~pany approved by the chief administrative officer and in 8 form satisfactory to the City Attorney, in duplicate, in the amount of five thousand dollars ($5,000.00), renewable annually, and conditioned upon the faithful performance of Crantee and that in the event the Crontee shall fail to comply with anyone or more of the provisions of this franchise, then there shall be recoverable jointly and severally from the principal and surety of such bond, any damages or loss suffered by the City as a result thereof, including the full amount of an;, compensation, indemnification, or cost of removal or abandonment of property aa prescribed by this ordinance which may be in default, plus a reasonable allowan=e for Attorneys fees and costs, up to the full amount of the bond; said condition to be a continuing obligation for the duration of this franchise and thereafter until the Crantee has liquidated all of its obligatio~s with the :ity that may have arisen fran the acceptance of this franchise by the Crantee or from its exercise of any privilege herein granted. The bond shall provide that thirty (30) days' prior written notice of intention not to renew, cancellation or material change be given to the City. (b) Neither the provisions of this section, any bond accepted by the :ity pursuant thereto, Dor any damages recovered by the City thereunder shall be construed to excuse faithful . performance by the Crantee or limit the liability of the Crantee under this franchise or for damage,. either to the full amount of the bond or otherwise. 3 4 S 6 7 8 9 10 \l 12 13 14- IS 16 17 18 20 21 22 23 Z4 2S :l6 rt Z8 Z9 SE~ION FOURTEEN: lNOCliNlFlCATlOll TO CITY. (8) ~rantee agrees that at all times during the existence of this franchise it will maintain in force. furnish to the City and file with the Council. at its own expense. a general 30 31 32 -11- c ('"', v ........ '-" 2 cv~prehcnsive liability insurance policy, in protec~ion of City. its boards, commissions, officers, agents and employees, in a company approved by the Chief A~inistrative Officer and in form satisfactory to the City Attorney, protecting the City and said persons against liability for loss or damages for personal injury, death and property damage occasioned by the operations of Grantee under this fran:hise, with minimum li~biHty limits of five hundred thousand dollars ($500,000.00) for personal injury or death of anyone person and one million dollars ($1,000,000.00) for personal injury or death of two or more persons in anyone occurrence, and fifty thousand dollars ($50,000.00) for damage to property resulting from anyone occurrence. (b) The policies mentioned in t~e foregoing paragraph shall contain a provision that a written notice of any cancella- tion or reduction in coverage of said policy shall be delivered to the City ten (10) days in advance of the effective date thereof. If such insurance is provided in either case by a policy which also covers Crantee or any other entity or person than those above named, then such policy shall contain the standard cross-liability endorse~ent. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 SECTION FIFTEEN: INSPECTION OF PROPERTY AlID RECORDS. At 22 all reasonable times, the Grantee shall pemit any duly-authorized representative of the City to examine all francnise property, together with any appurtenant property of the Grantee situated within or without the City, and to examine and transcribe any and all maps and other records kept or maintained by the Grantee or under its control which,treat of the operations, affairs, transactions or property of the Crantee with respect thereto. Grantee, shall, after reasonable request, furnish to the Street Superintendent, copies of maps and records showing the exact location of all Closed Circuit System equipment installed, or in use, by Grantee, in streets, alleys and public places of the City. 23 2>4 2S 26 '17 28 29 JO 31 32 -12- c - l~"""" '-' ,-) "'" v 2 SECTION SIXTEEN: CONSTRU:rION. Gr~ntee shall construct and maintain System in accordance with General Order No. 95 of the Public Utilities Commission. SE:TION SEVEmEEN: RATES. The Grantee shall, within thirty (30) days after the granting of thb franchise file with the City Clerk its rate schedules, setting forth the amounts of all rates a~d charges presently ~de for all services to be rendered by it, which are covered by this franchise. Thereafter, Crantee shall not increase its rate schedules without the consent 3 4 s 6 7 s 9 10 of the City Council. SECTION EIGHTEEN: SEVERABILITY. If any section, subsection, sentence, clause or phrase of the ordinance is for any reason held illegal, invalid, or unconstitutional, such invalidity shall not affect the validity of the ordinance. or any of the remaining portions thereof. The invalidity of any portion of thb ordinance shall not abate, reduce or otherwise affect any consideration or other obligation required of the Grantee by this franchise. I HEREBY CERTIFY that the foregoing Ordinance was duly 11 12 13 14, IS 16 17 18 19 20 adopted by the Mayor and nardino at a. ;;~-:<<, ~'.' . / day of ... /~ ___ h. L_<t} Coenen Council of the City of San Ber- meeting thereof, held on the .7,,'<< 21 22 1967 by the following wit: vote, to ~~, , ';' ,-,Z~..6'?... . ;' - 23 Councilmen _4"<,',,,,-/,, '"" -""--:!{','~./ /~r./ --,~ ,.......<c......~? ~' AYES: 24 ,/J~ 2S - ~~/.-.r NOES: >___,) ABSElfr: 7/.. ~_ I 26 'n 21 ~t</c!i; c@h. Ordinance is hereby approved this, .</.-~ 1967. day 0 29 The foregoing /I,:~,. /....J 30 31 3Z l'oiyorlfke l(~At~n Approved as to form: ~~~ City At orney c o o 3 EXHIBIT "A" EQUIP~ TO BE DEDIC.'.TED TO THE CIT'i OF S.a.N BERN.1.RDINO EQUIPMENT DESCRIPTION- panasonic WV-V3, W-Canon l5, 1 Lens; 3 tube color camera with camera cable, lens, and all CCU. UNITS 3 1 1 1 1 Servo Pan/Tilt/Zoom Mounts JVC KM-2000 S.I.G.; Video Switcher Shure M267 with .'.26S; rack adaptor/audio mixer Quanta QCG-lOOB; dual channel character-generator Catel RF Modulator .'.-" _, .-.r ~1. 1 Winstead G8527-Based Custom 3-uf rack ir~t:~' ,",,'" 2 Yideotek RM-12RA with 9-10 pi~ cablesr videO~~rt1~ors, color 2 Panasonic WV-5362 video monl~ors; ~kl~lack~nd white i. - '. ." .-- 7 Colortran l~ 6" Fresnel wit~ access; li~htinq, permanent .,1 _ ...... 1 SONY VO-5850 with RMM-501 mounts; Vctt-editil'l9 3/4. 1 SONY YO-S800 with RMM-50l mounts and RFU-634 modulator; record/play VCR 3/4" 1 SONY RM-440 with type 5 cables; edit oont~ller with cables 1 ~D.'. WV-3; time base correctOT .' ,. - -- -. ~~ . 1 TektroniX 528- A; waveforl1l,llonitor with rack llIOWlt - 1 SONY VO-6S0~w!t~ 2 batts, charger; port&ble,VCR 3/4" with access 1 Bogen 30S0wlth.fluid bead, dolly~.port&ble tripod, head and dolly 1 Lowell elemental kit; portable lightinq package 3 SONY ICM-1SO, microphones, accessories 2 McLean 23B40S.'.17 rack fans . 3 Telex Head Sets 1 Videotek APM-2RA dual channel monitor/speaker with amp * Equipment may be equivalent to that identified as per this Exhibit "~". -6- - - c ,..... .., ""/ \.....- EXHIBIT "A" EQUIPMENT TO BE DEDICATED TO THE CITY OF SAN BERN.l.RDINO . Title to the equipment listed on the previous pAge will be vested in the City of San Bernardino. For newly purchased equ1pment, manufacturer's warranties will be in the name of the City; should any of the equipment be provided from existing inventories, Comeaat CAblevision Corporation of California provides a one (1) year warranty on the equipment to the City. '. r- - ". ;:il ~ '",", ., :..;.~ ,.... .....,... ':..:. "7' "~ -" . '.. . -7- COMCAST CABLEVISION 2090 N, "0. Street San Bernardino, CA 92405 BULK RATE U S, PeS TAGE PAID PERMIT NO 222 S..ntl Ani. CA c - ,--- -,-, PflCeville, FL, OverfHJild Plan Hinges on Courts' Decisions both the city aDd the cable c0m- pany. ADd both Jideo said they believe they will be viDdicoLed. 0"., cue wu filed ill U,S. District Court ill Pensacola, FL, by Warner, Warner llUed the city and ita 00UDCiI memb<<s and aIlepI that doe city wiD violate the Fint Ameodm""t if it buiIda .,. Anne Duk.. NICEVll.LE, FL- Three IepJ ~ ~ pendinJ ill the battle bet>..... the city 01 Nice~ and ita Ioc:aI oobIe compllDY, Warner Cable Communicotiona Ine" over the eity', plan to overbuild Warner, ao:x>rding to officialo 01 rY1u/ r.cnc ....nei IVe.. <" ~I~ I'-~/"\._O-, a aoeo ,,,l.Nrw<<J rylllem that" ultima1ely pula Warner out 01 busineM. In addition, the cable company ..ked the court what public purpoee would be served if the city Weft to drive the eD.linc company om cl buoin<s. aroording to Grec Dunn, '1'... ner', vice president 01 Iqal affairs. The 52-channel, one-way addnaable oyoIem cummIy baa about 3,000 oub.....lb.n. The city held a IUOoelIllful relenDdum ill 1985 011 the idea cl a city-<lWtled CAble oyoIem, said Wayne Good- , 100, ll8lliotant to the city JDlIDI&'l& When the relerendum puoed, the city went 011 to p\a.n I<Jr a system and woo the ricIrt to iooue boodo lor bnildinc it. Mr. Good- !OIl said a date lor iMuinc the boodo baa DOt been set, but that the city probably woo't wait until the \egal questiono are 6eIlIed before it Ioe<I ahead t-a..... "that could take 15 yean. " Earlier this laD. Okaloo6a County Circuit Judie Erwin Fleet mIed ill the city',lavor. and . ~ 4 approwd the IopIl"uuodw.. it , lollowed. g..-' r . - -~ baiIdinc IUd! a oyotem would serve a ~ pabIie .....~ W&mel".a~tm.~, and the ~ wiD be heard before the Florida Sup....m. Court. A beariDc 011 thiI appeoI is ocheduled lor Doe. 2, '"""dD..C to Mr. Dunn. In addition, WUDOr fUed the city over """"n;""1 poiata,lAlCb u the city'. Iailure to reoorcI ita charter, ill order to protect the . cahIe company', rlcfrta to have thooe iMlIoelI """..vI.red. Mr. Goodaoa Mid that the decision to build the I)'wIem is IIiI\ peoding. but he Mid, "We have prevailed ill 00UI't 10 lar aacI we thiaIt we will conlin... to do 10. " He said the city', IUIODI low wanting ita own I)'IIt<m otemmed originally from dioeatislactioa with the cable COIDpADY, but that oow the p\a.n is to <IIer more than just tdeviaion. "'The syotem we plan will be a more powerful oyotem. which will iDcIode oocur- ity oyatem" automate traffie ligbu and do vuiona other wb, " Mr, Goodaoa said. "It will oerve the public we- ty, health and welfare," he said, NiceviDe, be ...id. baa lor IOme time envied its nearby aiater city of VoIparaioo, when Warner wu supplanted b~' a municipally owned <able system. "It'. be- ca..... cl the JU~ 01 Valparaiso Cable TV that our own citizeaa wlIDLed dtis lcity-<>WDed I)'wIem I. The NioeWle situation is impor- tant beca..... its ODe of the first Ol[- amples where alocalcovemmeat ia pl.nning to overbuild an exist. m, <able company. Once we do it, other communities will promptly IoIlow suit, . Mr, Good- !OIl said. Mr, Dunn ...id Warner does not plan to give up without a ftgbt. "Tbere'. an important principle we're tryiac bere. They've liven WI alraachiae aacI now they..... ttyinc to compete with ...." he said, addiac that Warn... plan. to /igbt the city ill j - - ,.- '- , ~ lOT, MI. M.loi oMd ""', Tel Plans Jo Propose. ;:r:S:i:-: Overou"IId-II1g' ,,- NJ System lor .l5--dwu..I.,......," Acrordinc 10 ~"eD FelteD- ....., dWmI.. 01 a..rry Hill CabIo,~ Commi...., "'" Run by New York limes ~~~S ,~ , . ..... dnwbac4 ''The ........ By LMry ...".. ,iDlle rlt'M.Olmeal b.. ~eD CHERRY HIll. NJ-'JWo. Tel;, DOl tIw ooJ,....puy' .uad>ed to tIw coo....:' be Comm11D(;l,tiooJ lDc.. will mab roosiderinc aD o,,~ ia lJw aid. . p<opoMIll . pahIIe '-"'" ....., I";'" KaIm, pnoXIealoll But MJ, F.!.."",,," poinlOd beItn d.eTownBOlll'd b.R ~ ~ew York-hued BroadbaDd! ouItlwdwoommittetlitrutiot 0ee.161o~m.140.080- Comrnunicatic:Ja.IDc," rt!Of:fJUy I NITsrmt'WaJaDdthtTCIpr'l>>' .w:.riber I)"IiLeIIJ 0WDed.. Kid that he wiD be mak.inc aD . pouJ u -two w~&t. matw'l." op.nlOd by Tho New YOIt .ppGcotioo to ove,bWId-wfth MJ, F......... ..Ml a..n" r..... Co" --- ...-.- _ fiberoptic l<<hooIocY-tIw NIT Hill become inlelellOd in ..ploe. dUoe apireo in Am 1981, TCI, .."'m, which he ~ built I iar tIw ~ 01 IDOIher officia.ll &aid laM: ..... in 1975 and law told \0 ~IT. To I rornpall! commc IDto the fru.. UTCI"p",!"-,lupl'"O',,.t" d..., how".., Broodhand hu dUoe""'oI.....eoq,...de..... by tIw "UDidpoSty',.moo., Dol 'PPO'Oolched c;" o/f"ocioIo I mioedthat!hue;'DOtud.lhiar committee aDd Tow. Board aad aboul its U31entiont.. . I' U I.D UduRVf frl.DchiM:." the :"iew Jervy St..t.e Board 0( -People in ~I'TV Hill an DOl ..\1 tbt municipality becu Pu.blie Utilitiea. wh.icb vanta btinc provided with me bna I roiAa: lhroUlh, .the fr.Dc~~ ~ilwouIdr~ltI>> i poMible cable WMtt." said AJ ~aJ~.lt~lOticil. ru-a tinH the D.ltioa', larJIIIIl GianDoni. Tel dhiDoo viet anciDfcrmJlbooClOOC'erDmct<<Jt.. muhiplel')1ll.elnloopentorhaa. I presideDt in ....hinctoa. DC. ' flClIocicaImnoubcuiDt.hecable OUI \0 0'0'erba.iJd wtitUy. cab&. J "We loundeood rec:eptioa to our ( indllltry, be said.. Earlier thit S)'!Im:l when ODe alrMdy exila.. I ,ynem 01 Dot requirinc add.re.- ' year. tht ad\-1!Cf'! committee aroortfinc to TO viet preaidem ! aNt oon\ler\.en Ulln thn're ~ rfl:ehed tom.. inlormatioD from , and ooonaeI JobD Drat*'. abeolut.ely D~. &.Od' DO ~C1. '"but that Wb oot ~ in~~t.I'l The TClI'DOW oom.es aher aD charaes lew IIeOOOd outku.. .. he bOD 101 them to O\erbuiJd. he NIT CabIo TV app6catioa 1o?i .dded, ..;d., I Mut:h to averbund fW(l DeaI'h, The- b\g'f'.. complaiDl 01 CIU'- !tlr, re1wn~l~in Mid ..then.. Tel-l>eld &ancru-io "'" New ...,NTItuboaiben. ~ 00"""" b.1;... t1wy INITI , JUYytDwDIol~Epbrem toMr.Gi.anooai.iatlwl)-stem', ha~ DOC ~pplied what we've ..d G"-- 9oJ."~ Spnx.rcoo"""","whid"","'" .....od ""- durinc tIw "0"'01 Wdthatthedecirioa to,....... rompatible with cable-ready pl"OCtS. He n<1kd thIIl under poooiI>Io .......t>aId.. a..." 11II .;d~ ",.".,jen ..d TV lodenI low, "it i, vuy dillicull .. w. .. ,.... . .. Nl'T Ida. hr laid. DOt l'tDrW a (nodUle." rnovea........"aI). r IWI. Nefth.NYTalficiala..aa-tM Tlw 1lf..'i1lO~ oommit\et will roodl ....-.......... ....uf-.., 01 "'" Sp<.... b.,;'ioc..~.tiooon NlT~:, ,'':'" ~... COD'o"S"I<<. Somenret. SJ-bued w~ to ",new SIT', ftu- i senl lor an O't,erbuild huB Moae& ~bU-Go.bo. weft ~ chiar to the T nW1li Bo.rd Dl'xt. : [phn.im, but ~ itl appS- able to commeot OD ~ cbe moaLb. I catiOD lr\IuaJ weel. .,0. II did oooV<<1er preeeDta probIemab ~ rd:woo,.t..i.DackDaw~ 'I DOt l'f'Oeive municipaJ conteat tube with c:able-tudy VCR. or 1ocaI1p'CUla1; 'n that Tel m.ade , from GlouoeAet City. TV tetL ita app&aoow u a ~taliatory I ,~ax:>n:lLnc to Su-veo MaiD. NYf olficialt iD t!w put hne me.uurr &her .'iIT applied to i NIT ,.ouaI .....,.. ro. "'" ._.... iod...,', hiP overl;Wld tho- .... Tel &.... ~ HllJ rywtem, the- paraat pa)'-pe:r-view buy raa 10 die c:hi:Ia. -'Snf'n ~'ou kick. aleep- ~"' York TIJ'Det Co., at. remit iDteractive. impuJw Sprucer i.aJ p... I(,lmftimel it waket 01 "'" .....1 dt.... in.... __ "".- "" 1IicI, rrooomy ADd . review of capital TO', !th. GiaDDocti ..id he ~ "decided it .oa't be TClinJooeanmdedaa.n, wouIdaolchar~lhteom. doi.l'ayov..-builda." Hm puhOc bearioc -..... paa)",propo..I.."maJ..""Y," NlT. reM""'" iD which "DiDe aatiDc ... the app6c:atioo ... or 10 people opob. ODd aD bat .....do -.. tIw .....tioa 01 .... ooe wen adamant about 1M cahIt CllIIUIliuee. .. ioooo_cet ""'I "'" Sp<.... 'I ~ to John 0..;><<, COO_ co....! .........)Iz, TCI ... pn-oida ..d ,......J GianDotti ..id, ........... .... compaDr on tewnl ocaoiooo hu ...... ;"vilOd by other .uicip&litiet \0 mak. m..., I "Chc(,,"\~1 N<"l.u~ J'-3G-B7 I ~ ....-Ir.o- """~t"',,1IicI. WhlIo &,. ..... baoo . loc pIaooo -. . cIowree 01 .... build hu w... pio.. ia -iu<-. TCJ "'u . puticipUd . kJfr: capacity, tIw a..n,. g pro poeaI repreaeo\l thf r.. tin: TCI wiD ..-.... . ...... , dupli<a.. ....... &oocha. '01. o..pa- 1IicI, Tel'. Mr. GianDotti lAiC :rr ~TCJmichtbel~; OwrtyHmiothatlh.~ NYrI)'IIftD....chanoel~ .. Itretc:bed.... Hf added Uu NYT _ three dwuldt "" ?O' pero.virw: l"'OlIOlho..., fDO'IoVs &D- OGe to IItU tbt tel'Vict. ~. C--1oU DOCli oMd TCI would !>aDo: 54-.chanoel Iymm iD av.rr Hill, Accordinc 10 doc-wnmu. ~J.t. ...itb the "'It Offi~ 01 C"a.b-; Tele"iaioo, which muet t"PC"Ot:' meDdation,oo RIch IppUc:a=Ior; to ita panni .Df:~'. Boa:-d ( PubIlc: t:tilitioo, Tel will a.l ODe year 10 canpkie COQ:!IJ""...-.:x" ol . Qerrv HOO n~ ti'a i0dude02l.-w..oIcn".ok"", :.. mile. 01 distributioD, and 5\. mil" O( undercround :..-.;.~ aDd 14 mLJet 01 und..rr-:-~ dittributioa. The Ipplication !Utes ~.. Tel would 0/1" . ~. buit IiMup lor. moD~ dlw. '1' 01 liS (or the lint T\' ~ Fi,. pmtUwo dwmelo- The 0..- Channel, C'memu. Sbow=ot Home 80s Off'lOI! and PR ~ ~ -will be avaiW>>e a la cat'W. Accordin, to SIT.~. applicatioo filed with 1Jw <<.II; apoc'y. the company wW! 'A. olfer .....eraJ procrammiDc- :rr- indudinc ita.. anlrnDl tirr" ,~ : bro..dcuI sicn.... for I 1DoC:C'"'..h; charJe of &5. -:5, The C'OCDpar\ IpOI1I tier. for C.50. ~ t.at'timP~uioo.Ly' ""TBS. L'SA ~tl"ork aD. .'WOR-n'. for aD addit:lcor.ll 12,50. the "Iamil) tier-~. MTV: Music Televiaioo. 0:'\ Cable N.IwOlt, C:-l!\i, !\i~ cIeoo,.Burl......,~_ oeI. The W.."", 0..,..,.1. "" I Cablf Tdeviaioa ~'mocn of I ~~ Jenry and Rna"," --. """"",, NIT off.... ..d Wd ;0 will oooUntw to oIIfr. thf' YIDI' ~ f , p-y aeMoea TCI ptC>pOl!lft. nw. I only notabIr diffutncn..... '-")'1 offenn, Dime-y al $J9.05. eom. porod wilh TCI', SIl,:i. aoci NYT'.12 dilCOUOt lor Cio-n.al when lakeD in combinllioo: -i!.h ODe or two olher paY'. ID .dditioD. ~'T of!~r' PRISM r.. '12, whU. rCl h", it pegged f.. '13,95, Meoowhi1e, M" Kobo"': .. plana 10 10 ahead with his fiber optic: p10..1.. OterT)' HiD and ".hordy" will file a formal .ppUcatioa. 0 1-----;::;--...;.. -- - Experts See ~""ort~1 ern' Changes in S stem Sales '.. = By Linda HOLLYWOOD-The cable industry will see a drop in S)'stem acquisi tion prices and more diffi- culty in obl.1ining merger /inanc- ing IS a result of Wall Street'. ~ Black Monday," but only for the ahort tenn, according to banking authorities speaking before a Women In Cable meet- ing here, The market drop hIS devalued S)'stem sale prices S-15 percent. according to Greg Ainsworth, v;ce president, corporate devel- opment for Daniels.! Associates Inc. But Iai Bowen. rIDt vice president, investment banking for Paine Webber Inc" added that the acid lest for future acqui- sitions will be the deal. that con- tinue to completion now. Mr, Ainsworth pointed out that two transactions were "abs0- lutely impacted" by the market's nuctWltions. The finance tenns of the sale of ScoU Cable Com- munications to a unit of Sim- mons 'Communications are ~in adju.tment and that deal hasn't been nailed down," and the winning bid on The E....x Group properties has now been changed. due to rmancing diffi- culties, Mr. Ain.worth .aid (see l.lull;channe/ NewI. Nov. 16. page 681, He added th.t the merger of American Cables)'$" lems Corp, with Continental Cablevision Inc. will not be affected. The deal'. going for- ward at the previol15ly' agreed price per shan, he said. explain- ing "deep pockets can control their own future." Mr. Bowen said some banks with long cable hi.tories an pull- ing back on deal. because they don't know what brukup values are going to be. Some investon were judging prices on a 12-tim... ca.h-Oow basis, but now are un.ure whether they should be using a fonnula of 11 times or I.... 3 V , ) - he said, There 'a ..ill plenty of interest in purchasing cab'" syatem., but now marginal deala I won't get done. he said. adding that market uncertainty has ltaken out an element of the buy- ing community which had helped prop up that cash-Oow fonnula- lion, There is .tiII receptivity by ~surance companies to provide mstrumen15 .uch as 10.)'ear fixed-rate finance. he .aid, because some of the.. rlll1l. see that the fundamentals of the cable industry hne not changed, Demand for .y.tem acquisi- tion will remain high. the experts said. continuing a corporate bllV- ing .pree in which compani~ have tried to buy sy.tem. that would help them reach their targeted" critical ma.... of .ub-- scriben, However. the experts said. ..llen will demand a higher certainty of closing, Mr, Ains- worth said .ix or eight multiple s),.tem. operaton might .urlace as buyen on a typiW transaction now where 12 suiton might have surlaced in the past, But today'. level of intere.t is .tiII enough to drive the deal to the best value for the seller. he added, Cable will continue to be recession.resistant, if not reces- .ion-proof. the .peaken said, ,\. an example. Donald Russell, managing diredor and group vice president for investment bank- ing. Communication! Equity AMociatell, cited a property his company ia involved in selling. Two potential bidden were con- tacted ODe week after the mar- ket'. biggest drop. Though their current ay.tellUl were lrading at an estim.ted SI.OOO a .ubecriber. each potential buyer offered a bid on the sale property of more than S2.000 per .ub. he said. He added the deal has not been completed, mu I he honn<::,' N<:"L.u~ "-30-cl7 '. - Mr, Ruaoell Slid f.cton other than "Black Monday" will have a greater negative impact on a)'!~em prices. including tal policy and a regulatory environ- ment that ia aeating the threat 01 over~uilda, Mr. R UMell said there . a very reasonable chance that the cable induatry will be ~ushing the idea of rate rereguIa_ bon. _Icing status aa a regulated ~~nopoIy aa the only way to keep ctties from promoting overbuiJda. Mr; Ainaworth added that he belit\'e5 courtl will find "ch .^..:~-" erry- pl"";'"l' by competitive com- pan.es to be diocriminatory and that overbuilden will be required to serve the whole community, 0 - '-- ....., Ffit To Seek NJIic Comment On Cross-Ownership ~,..sHINGTON- The Federal Caa:unuoic.atioos CommissioD 1&!l week Mid it ...i11 ...k com- meIIU on whether the agency .b:x1Id waive the telephone-cahle ~"'nef5hip role lor General Tdrphone Co, 01 California, whic:b wanto to build and main- w.. a coaxial cable plant in the L:.\ngel.. suburb 01 Cerrltoe, The Cf088-<)wnership role in part ban telephone companiea bun owning cable planto located in their !Iervioe areas. The com mission specificaUy wiJI ..k the public whether, if General Telephone's proposal iJ DO( consistent with the FCC', ~wnership roles, it would be -appropriate under the cir- ~""" to waive thooe rules, n Ca:nrnento are due Dee, 10, with ~ commento due Dee. 21- The National Cable Television ,\!ooociation and the California Cable Televi.ion Association b&~ Mid they oppose General TeIephooe's propooaJ toenler the caNe busine.. in Cerrltoa. Responding to the FCC', deci- sioc to collect commenu, GeneraJ T drpbone med a petition to the ..--..nl"m, asIcing the agency to sbonen the comment period to ~, 25, with repliea due Dee, 7. Geoeral Telephone aloo request- ed that only ito filing be accepted ~, 25 and that oommento in the reply phase be limited to "existinc oppoDenla" 01 the company'a application, NCfA promptly re&ponded to thia by filing a petitioo at the com- - - . ra oppoeing General TeJe. phao>e', requeata. Tbe FCC baa DOl re&pooded to GeDeraI Telephone'. petition, 0 ,,---:'u1 ~fChonne I "Jel.J.J5 11-30 -87 ~ "--",., - - j - - I c ,., Dllrtolt...... En~kbrcdlt ] ]HrrlsOfl.~1'L("rdl. LAWYERS Thor--.r- .-. 8v"o""' 8,,,,,.. ~-..;tE'brf'(ht.' Var.. ..........!to'" Stjl".fcr: E (pr(!". 1"'horT'.e:- 1-i.a'DE" ~ ~ (hf'Shd~ Sl~of""' \" D"hter RobP-': ... l;.l>1"\ nedy AIIr""" ^,lio,On ~iSI~kl JohtI C ~f Marl. E ;.narS ~:: Dan..""" ~E &e1'pn\ M...-y E ""'~'...r LO<! AJ.r JoIln>on St~; Ge-rnch Poul A. ~ E~ C Amo<os, Jvdy '" M,ller December 4, 1987 IN CAlIFOIlNIA SOO Nonh Nfowpoo 8ou~afd. ~ulte 100 ~Il<ach (al,lornla 92663-421.i (714) 6~1OO FAA (714) 722-<>638 Of COUl<SEl Don M Ja"son DonaldG D"",,' Geo'9" J B Cot.. A Pa'":r>E>'\,",'P Of Plofe-<.:.vol"lai (.:'DO'a~ :-\ dTifornia FilE 1<0 James Penman, Esq. City Attorney CITY OF SAN BERNARDINO 300 North "D" Street, Room 668 San Bernardino, CA 92418 Re: San Bernardino Baseball Club Franchise Assiament Dear Mr. Penman: I have been unsuccessful in my office's attempts to contact you by telephone on several occasions (e.g. 11/20, 11/23, 11/24, 11/25, 12/1, 12/2 and 12/3) to discuss your letter to "Dick Shanahan" dated November 2, 1987, and my letter to you dated November 3, 1987 regarding the resolution of the requested assignment of the San Bernardino Baseball Club, Inc.'s (the "Spirit") franchise to the city of San Bernardino as security for its Fiscalini Field lease. To recap for your information (in the absence of the requested response to my correspondence dated November 3, 1987): The Spirit Board 18 fully able, willing and ready to offer the City of San Bernardino reasonable and sufficient security for its F1scalini Field lease. The present franchiae assignment (the requested security), however, appears impossible to execut.. The Shareholders of the Spirit, as presented at their Annual Meeting held on Tuesday, December 1, 1987, voiced their reluctance to assiqn their individual stock ownership interests in the Spirit franchise, per the Fiscalini Field lease, tor the reason that adequate security for the lease can be covered sufficiently by an alternative means, includinq a UCC-l lien filing. 11/ AIlI2QNA, Harrison' leKh. P.c. . 1001 Notth Centra' Ao",nuo, Sort. 900. Aloeni><. Arizona BS004 (602) 257-SSOO FAA (602) 254-1913 ....~COtJlCl'Itiotl t~of!htC"om.a'" t~d'lhtC.(I'noI"A.nzor.I"" ClItIM.~df'cAriloroe" #'1 ~....... '-" / James Penman, Esq. December 3, 1987 Page 2 As you are aware, Mr. Joseph Gagliardi, President of the California League, expressed his opinion that the League would be reluctant to approve the assignment of the Spirit's franchise to the City of San Bernardino per the Fiscalini Field lease. Although it is clear that any final California League Board decision would be made by a Board vote. As the California Baseball League is not a party to the Fiscalini lease, they are not bound by the lease or its requirements. In light of the impossibility of executing this franchise assignment, paragraph 35(2) of the actual lease speaks to the efforts by the Lessee to cure any breach due to impossibil i ty. Reasonable efforts by the Lessee to correct any such breach cures default. The San Bernardino Baseball Club, Inc.'s Board of Directors understands the City's present concern and need for reasonable and adequate security for its Fiscalini Field lease. . Therefore the San Bernardino Baseball Club, Inc. requests the city immediately to advise this office of any reasonable and adequate course of action necessary to rectify this impasse. The Spirit Board is willing to give agreed upon security to the City of San Bernardino to protect its investment in Fiscalini Field. Obviously the Spirit Board cannot act without the City'S response to this request. Therefore, please contact me directly with any and all direction for the Spirit Board as soon as possible. all contact with the San Bernardino Baseball be made through my office. BE:el B\lrtott Englebre~ltt Harrlsott0Lerclt LAWYERS - -~ - - - - .' "....'.,., C I T Y ~ ~ ....~ -.....I o F SAN B ERN A R D I INTEROFFICE MEMORANDUM 8711-202 N 0 REC'O.-AOHllt eL' f' ~. Cl OEe -2 :', ';, \..... '- TO: RAYMOND D. SCHWEITZER, City Administrator ~ ri) FROM: CRAIG A. GRAVES, City Treasurer SUBJECT: Financing of New Police Station DATE: November 30, 1987 (7274) COPI ES: Mayor Wilcox; Warren Knudsen; Jim Robbins ------------------------------------------------------------- There are a limited number of methods in which to finance the construction of a new police station. However, selection of a method to finance the construction is not the most significant issue the Mayor and Common Council must deal vith. The most important issue is the identifying and determining of the REVENUE SOORCE TO FUND the ANNUAL DEBT SERVICE out of the budget each year for next THIRTY years. Unless there is the creation of a NEW revenue source then the payment for this large debt service will have to come from the GENERAL FUND. This large debt service would have a significant impact if it had to come from the General Fund during a time when the General Fund is already severally limited and there are no reserves set aside to do major capital improvements. There are two basic types of financial instruments to look at vhen financing a project of this type. The easiest is a lease type instrument. These can include Lease Revenue Bonds or Certificates of Participation. If the project were to be a $lO million construction project, then a $l4 million dollar bond issue would have to be sold. The ANNUAL DEBT SERVICE OBLIGATION that would have to be budgeted annually would be $1.3 million for the next THIRTY years. If the construction costs were $15 million, then a $21 .illion dollar bond issue would be needed and close to $2 .fllion ANNUALLY IN PAYMENTS would have to be included in the budget. If the construction costs were lowered to $8 .fllion, then the debt service would be $1 million annually. Unless a City-wide assessment district or Mello-Roos District vere formed these payments would have to come from the General Fund. The property owners would have to be notified and with the Mello-Roos District an election would have to be held. " //*5 / - -~ - - - .C '"', '-"" .-/ INTEROFFICE MEMORANDUM: 87ll-202 Financing of Police Station November 30, 1987 Page 2 Another alternative is the issuing of General Obligation Bonds. The major hurdle of this option is that a 2/3 vote of the electorate is needed. However, public safety issues have had some limited success in California. On a $lO million construction project the Annual Debt Service would be $950,000. This would be added to the property tax bill and the impact to the General Fund would be the increased Opera- tions and Maintenance costs. In coming up with the proposed schedules the projected interest rates ranged around 8.5'. The construction esti- ~ates were based on $100 a square foot. This is an estimate confirmed with our Engineering Division. The square footage estimates were based on the 100,000 square feet and 150,000 square feet as provided by the Police Department in their correspondence of March 6, 1987. Some limited assistance in reducing the construction costs could be achieved with assistance from Community Development Block Grant Funds and the Redevelopment Agency. However, our CDBG Funds have only averaged $l.75 million over the last few years and we always have more requests than funds available, so the movement of these funds would mean a reduction of projects or services in other areas. The Redevelopment Agency could provide assistance. However, in dealing with amounts and types of assistance you should contact Ms. Glenda Saul and the Agency Staff. Because of the immense costs of a project of this nature and our continuing limited financial resources the Mayor and Common Council need to critically look at all options available to them in providing an adequate pOlice facility that is also cost effective and affordable. The projected size of the building in critical in determining its costs. A major effort should be made to insure that all space used is in a cost effective manner. A critical area of concern is records storage. How much space is presently being taken? Could some records be moved off-site? Could some records be microfilmed? Could space saving cabinets or file systems be introduced? The Police Department in their memorandum of March suggests what they feel their projected space needs will be in the year 2030. However, the memorandum identifies 1/3 of their space for auxiliary uses that are not directly part of police operations. The Data Processing Area could remain in City Ball and has need for less than a third of the requested - - ~ -- - - ( .. '- ,'-. ,.... '--' . INTEROFFICE MEMORANDUM: 8711-202 Financing of Police Station November 30, 1987 Page 3 29,000 square feet. The Cable TV Studio can locate in another facility. The Emergency Center may need to be apart of the new station, but should be critically looked at in combining their space with other ongoing uses to get maximum impact out of the square footage. It could be combined with other conference room requirements and wired to provide the communications capability. The square footage for police uses is based on projected personnel in the year 2030. However, in reviewing the memorandum I can not find where their projections take in account the fact the majority of their personnel are on shift and in the field, 50 they would not be there at the same time. I also did not see anything accounting for the number of individuals assigned to the Community Police Centers or that the dispatchers already have space provided for. I realize that we are looking to hire a space consultant, however, the committee needs to take a very close look in the formulas used to compute the square footage and the uses contained in the facility, because of the expensive cost of new construction. Another option the Hayor and Common Council needs to consider is the possible renovation and expansion of existing facil- ities and buildings. The cost of renovation is between $20- $25 a square foot as compared to $100-$125 a square foot for new police construction. The present facility sits on a pad that could provide 47,000 square feet. The building would have to have the driveway enclosed and the circular staircase removed, but there is space. The lot directly to the west has a 22,000 square foot footprint and two stories could provide an additional 44,000 square feet and have it tied into the existing structure. It is my understanding that this lot is owned by the Redevelopment Agency. The present building would have to be redesigned to provide for better use of space and better security, but the cost savings would be significant. The parking problem and its impact on the downtown parking would remain unless other arrangements are made or this project was tied into the proposed new parking structure being considered by the Transportation Committee. If that proceeds, then a certain number of spaces could be designated and secured for police vehicles and employees. Another facility that could be considered complex of the Public Enterprise Center. there are some significant legal questions that those are being researched. However, is the present I realize that to be resolved and presently bUilding I, . . , ..i..,.. ,...: /',,\ -....,/ ""-" INTEROFFICE MEMORANDUM: 8711-202 Financing of Police Station ~ovember 30, 1987 Page 4 Il has 32,000 square feet and building 12 has 22,000 square feet with 280 parking places in a secured lot on a major highway. There is also additional land to the west of building 12 that could be purchased for the expansion of building 12. The City could buy the land to the corner and tie in with the existing Fire Station. Building II could also be used for other City uses and consolidate some of our other facilities into one visible location. We are presently working on having the Ingram Branch Library, Cable TV Studio and Postal Center leasing space in building Il. If it could be negotiated, it would also assist the City in the burden it has with the present site, the Five Cities and the Federal Government. It would however, move the station out of the downtown area. This site is eight minutes by freeway and there is easy freeway access to the site. It would also be right next to the California Highway Patrol Office. The importance of the downtown location is something the Mayor and Common Council will have to determine. If these two options are not acceptable, they would still consider exploring the existing structures as an option. I would hope that use of already The City could lower some of its costs by selling the present facility if it was determined that it should be moved. However, the projected sale figure, based on some adjoining property recently sold would probably be around $650,000. The facility could also be leased. However, both of these options have limitations with the amount of vacant office space presently in the downtown area. The task before the Mayor and Common Council is not a simple one. It long range impact on the finances, annual budget and police operations of the City are tremendous. Please feel to contact me witb any further questions and I will be happy to explain the options and their impact in more detail to the committee and answer any further questions they may have. c .....'''..... () '-' (;or'rusl ~bIt ~,nc Or-. ~ MnA Ua Cyrrrt4, ,., ~ 21$ e67~ ~ COMCAST J\me 10, 1986 Mr. Rayuald D. Sdweitzer Deputy City Administrator City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Dear Mr. Schweitzer: Recently, Ms. BaIbara Lukens, VicePTesident, Publk Affairs, C\)nI('nt Cable Ccnm rnications, Inc., met with you and other IIelIilers of City staff to ~i<r1'5S the City's cable television setvice and the upct'llllif\l change in the ownership of Grwp W Cable, Inc. As pert of tlle discuss ioo , the City raised questions about funae chamel capacity expansion of the system. In a letter to the City dated May 22, 1986, Ms. Lukens provided you with additional explanatory iJIfonIatico about C",......t's policies and procedures concerning declsims to .odify, upgrade and/or rebuild a cable system. At this t_, I would lib to provide you with mre specific information c:oocerninr Cr--nt's thinking on this utter regardina the cable $)'Stell servi.ng residents of the City of San Bernardino. First and forem:>st, I want you to mo.t that ('Jw(:o<>t is prepared to expand the cable systea's channel eapecity. C---..<>t will i~btely begin its analysis of the cable systea's tec.mical apabUities, custClller needs, IW'ket eooditions and capital costs. this llOTk should be cCJltlleted by aid -1987. Provided that the decis im to proceed forward wi th a channe 1 c.apaci ty expans ion is KQIVWIlically, tedmieally and finan- cially feasible, CCIIIlCast will budget the project .to be&in DO later than 1990. Dependina OIl the she and scope of the ~ project, ~letiOll should be ac~lisbed within 2 to 3 years of tile bejiDniJlI of actual. constNCtion work. It is of course possible that tJ)is could beaiD prior to 1990 if IW'ket canditions wanant the ~.(oenditure of capital and We feel there is . realistic uwO' t..I1ity to eam a retur'll OIl tile invest:llleDt. eonw-....t viII design the cable $)'Stell to be apeble of ca.ny1na 54 channels of pru&.......ina. ~ver, during our analysis and Sl.ilsequent pla:nninl, we JJZ'f fmf that phased in channel c.apacity ~xpm"iOll is the II>st prudent technical approach. This means that lie ~ ~...de the plant to 36 channels initully, then expand to 40 cllannels, and ultiEtely to 54 channels, as necessary. These decisions depend in large part on the current condition of the cable plant and the I\B.Tket itself. c ,.-"''"' ......... -..) , ,J . --- Mr. 1b)'llOl'ld D. Schwe 1 He r City of San Bernardino JI.ne 10, 1986 Pap Two In the interiJI, Cancast' will cmtiraJe the preventive _intenance PJ'OlTlll established by GI'OI.4> W Cable and will be reviNina the PJ'Oil'lIII line-up. Present 1y, the cable sys tem offers subser iben 29 Pl'Cti,;...d channels which iDclude local broadcast charne15, advertiser-5qlpOrted cable ~rvices, prem1U1l D:>vie and entertainment services and local pJ'OlT8llllini and ICCeSS c.hamels. In order to offer the widest nnae of pt'OITlIIIIIinJ, some charnels share time with various ~rvices. DJe to the fomer "ILlst- any" rule, the cable operator 1o'ILS required to carry all of the local b1Wtlc'~t stations regardless of custCllll!r interest or preference. In the San Bernardino area this meant that several channels were \Il8vailable for alternative progr8lllDing. As you uy know, the "ILlst-carry" JUle is DO longer leplly binding and this change in the law _y allow for SQIIe ProgTaII flexibility in the future. . ., As you my know, Cancnt is establishina a Western Reaim office in Southern California. Jill Bequette, Regional Vice President, Maureen Whalen, Regional Counsel and Director of GovenllleS1t Relations, Mike (eqlh, General Jomlager, and Barbara Lukens, rill work with you to ensure that the City is fully apprised of all future plannina. I hope this letter and its COllIIIitments clarify ec-nc~st's intentions concerning the cable system ~rvin& the City of San Bernardino. Should you have any further questions, please cmtact Milte ~ or any lai>ers of the c.--""t management tealll. Very truly yours, f?;g~ Rober t B. Clasen President RBC/m a:: J. W. Bequette, G~ W Cable M. (eqlh, G~ . Cable M. llbaIen, ~ . Cable B. Lubns, o-..ct ,.5 -' ~ """, : ,l... 1..../ \"..I September l2, 1986 Mr. Raymond D. Schweitzer Deputy City Administrator City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 ,"'"" -....) GROUP W CABLE G< we-... AS<boo. 01 x~ ~~X ~X~JaIlClCXJUtX;6' 888 W. Santa Ana Blvd. Santa Ana, CA 9270l (714) 953-7633 Dear Ray: Durinq the next few months, but in no event later than April l, 198~, Comcast Cablevision Corporation of California will be disposinq of some of its surplus van-type vehicles. As we discussed, we will be happy to qive one of these vehicles to the City for the purpose of transportinq production equipment from one location to another. Mike Kemph will let you know as soon as the vehicles are available for your inspection. Once you have selected the vehicle, Comcast will have it cleaned and the Group W loqos removed. Vehicle title will De qiven to the City. Comcast will not maintain or provide any warranty for, this vehicle. Thank you very much. Sincerely, IlJt Maureen T. Whalen Western Reqion Counsel cc: James W. Bequette, Vice President Michael Kemph, General Manaqer Stanley Wang, General Counsel Barbara Lukens, Public Affairs Harold Horn, CTIC - \.,....\ -:" !~ ~ \, ,~\, ~. v.( a- )..' . L,f- --'" "r', " -- '-"" September 12, 1986 Mr. Raymond D. Schweitzer Deputy City ~dministrator City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 - - GROUP W CABLE ~xxx )lS,XJ(M;)t)AA.v. .~"V'\I 'WYlIf )(xxxx: :.e ~ 888 W. Santa Ana Blvd. Santa Ana, CA 9270l (714) 953-7633 Dear Ray: Based on our mutual agreements at the final negotiations session between the City of San Bernardino and Comeast Cablevision Corporation of California held at City Sall on September lOth, I-~ 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. ~s 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. Tha~ 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 c ""'-"'!o. ~'"'\ -....) '-' R:.C'O..AOHIH. OF:'. C ;~cast Cab1evisl0n 2': -?: North "0" Street 50.- BernafO'no. CA 92~05 .-'~ 881'24~1 :_;1~84 .., ~ C:OMCAST" City of San Bernardino 300 ~orth "0" Street San Bernardino, CA 92418 Dear Mayor and Members of City Council: (1'1( Over the past year Comcast has made a number of changes to its operation to better serve our customers in the City of San Bernardino. These changes in~ude improvements in programming in responee to a customer survey, croes- tr~ning and build up of staff in the Cuetomer Service Department, addition of .ore incoming repair lines, and substantial financial commitments to the City for PEG access. In February of 1987, five new satellite channels were provided to replace low viewership programming. The new channels, Nickelodeon, QVC (the shopping c~nel), The Financial News Network, C-Span, and TBN were chosen to provide an increased variety of quality programming to our subecribers. We also added the NFL on ESPN which provides 13 NFL professional football games, including the Pro Bowl, most of which will not be available on network television. On the customer service front, Comcast has added 3 additional Customer Service Representatives to better handle incoming phone traffic. Additionally, extensive customer service training was implemented to cross train our representatives on service, inetallation, billing, and sales so that all phases of incoming calls caD be handled by the first person who answers the phone. Since this "one call ~dles all" philosophy was instituted, telephone abandonment has decreased dramatically and .on hold" time has been lowered substantially. lD 1987 Comcast went through an extensive evaluation of system technical per- formance in preparation for a future equipment upgrade. In addition, consider- able financial commitments in the area of PEG programming were made to the City. These commitments included studio equipment, a vehicle, and the establishment of 2 insertion points at city designated locatione for putting access programming an the cable system. --- '''"'' '. .J c '"' Kayor and Hembers of City ~ncil -2- ~~ ~ , .~ As these activities along with increased operat,onal coets have had a coneidersble financial impact on our business, Comcast finds it necessary to adjust its service rates effective January I, 1988. Enclosed is a card eummarizing these new rates. !~u will find these charges to be very much in line with rates in the area. All sJbscribers will be notified of this increase by letter (a copy of which is also e~closed). ~mcast looks forward to providing the reeidents of San Bernardino with continuing quality service while at the same time constantly evaluating its operation for ways to better serve our subscribers. ~~~~ Michael D. HcDoneld General Manager ~mcast Cablevision of San Bernardino '-' B Q~~'I!' ,? 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Z i '" tilt tilt tilt tit .. .... ' < ~ om ~ - - -, .. : i'i -<' , =""!O!O,.,.~,.,. :II: , - 'gll:U~ililil ' , m ~, > , 0 I: 0: C) ,.. - . CIl m .. ~ I.. : <: .. .. ~~~ 3 '~~ ~ " ~ " L ,I '-... ...~/ 1 11 12 13 14, 15 16 ' 17 ' 18 19 ' 20.. 21, " 22: I: 23 i~ 2'; , 25 :' I 26 ,I '; 27 26 ' 29; " 30i " 31' 32,: 1 2 3, 4, 5, 6' 7' 8 O'lDI~ANCE NO. ~ AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDI~G ORDI- ~ANCE NO. 2864 ENTITLED IN PART .AN ORDINANCE. . . G~vrING A FRANCHISE TO T. V, RECEPTORS. INC.. EXTENDING THE TERM OF SAID F~'1CHISE, PROVIDING FOR A THIRTY DAY PERIOD 1'0 CURE FAILURE TO COMPLY ~ITH THE CONDITIONS OF SAID FRANCHISB, PROVIDING FOR A FIW.CHISE PAYMENT OF FOUR PERCENT (n) OF GROSS RECEIPTS, A.~D AUTHOR! ZING THE SALE OF THE FRA""ClIISE 1'0 A COIlPl.ajY OF A CElITAIN NET WOlITH. THE MAYOR AND COll11ON COlmCIL OF THE crn OF SAN aERlIARDINO DO ORDAIN AS FOLLOWS: SECTION ONE: Ordinance No. 2864 Section 3 i. hereby 9 amended to read a. follo~.: 10 'Section 3. DURATION OF GRANT. Thi. fraaehise shall be effective on the thirty-first (31st) day after ~ publication of this ordinance. provided the Grantee has pai<H to the City the sum of one hundred dollars ($100,00) and, haa filed with the City, within twenty (20) days after such da~ of publication, a written instrument, addressed to the Council, accepting this franchise and agreeing to comply with it. provi$lons. ~his franchise shall ex~irl on December Il, 1993, unless sooner terminated by the Council. in the event the Council shall have found, after notice and ~earing, that: (a)) the Grantee has failed to comply with any ~aterial provisions hereof; or (~) any provision hereof has becooe invalid or unen~rceable, a~d ~~e Council finds that such provision constitutes a considzration ~aterial to the 9rant of this !ranehise; provided, however, ~~a~ the Grantee shall be given at least thirty (30) days' notice of any termination proceedings. Prior to the instilution of any hearing to terminate L~e franchise for failure to comply with any material provision thereof, Council shall first give Grantee not less than thirty (30) days ~ritten notice bwcertified ~ail that there are reasonable grounds to believe thl8: a material non- compli~nce of the franchise exists, which said notice shall specify such non-compliance. The franchise sha~ not be ter=dnate unless Grantee shall fail to cure such non-compUiance within '; .. !i " :1 " jt ( . ........ t 131 I 14 ; 151 161 I 171 181 I 191 201 211 221 """ c---.." ,,-,.,,/ 1 thirty (30) days aft~r ~eeeipt of such notice. Grantee shall have the option to extend the franchise !: an additional ten (10) ,ear period upon the same terms ~nd eor-- ditions set forth in the franchise upon qivinq written noti:e of the exercise of such option not less than six (6) months 21 3, 41 51 61 71 prior to December 31, 1993.- SECTION TWO: Ordinance ~o. 2864 Section 4 Subsection (a is hereby amended to read as follow.: "(a) COllll1lencinq with the calendar year of 1969, Gr..'tee aqrees to pay to City, annually, in lawful money of the United States, four percent (4\) of the total qross receipts collected or received, or in any manner qained or derived 1n each calenca= year, or portion thereof, durin; the term of this franchise, by the Grantee or its Operatinq Licensees from the properties, operations and business referred to in Section 2. In any yea:, or portion thereof, durinq which payments under this section amount to less than five hundred dollars ($500.001, Grantee a--. to pay the City the minimum ..,.ount of five hundred dollars 8; , 1: I 111 I , 12' ! ($500.00). SECTION THREE: Ordinance No. 2864 Section 6 Subsection is hereby amended to read as follows: "(c) This franchise is a privileqe to be held in pe:.c~. 24 23 trust by the oriqinal Grantee. It cannot in any event be trans- 251 26 271 28 29 30 31 32 ferred in part, and it i. not to be sold, transferred, leas.~, assiqned, or disposed of a. a whole, either by forced sale, merger, consolidation, or othe~lls., without prior consent 0: t~ City expressed by ordinance, and then only under such condi~i=ns as may be therein prescribed: provided, however, that no such consent shall be required for any transfer in trust, mortga;e, o. other hypothecation, as a whole, to secure an indebtedness; pro- vided further, however, that this franchise may be sold, trans- ferred or a.si9ned by Grantee to a person or entity whose net -2- c 9 10 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 ~o ~1 32 - V "~ ,.,~,i 1 2 3 4 5 6 7 8 I worth at t:.! time of such transter shall be not less than $250,000.00 (adjusted to include incraases in the Cost of Living Index tor S~uthern California over the current Cost of Living Index), as shown by a statement of net worth certified to by a licensed Ce:titied Public Accountant, without the prior consent of the Gr~tor. Prior consent of the Grantor expressed by ordi- nance shall be required in the event the Grantee issues lice~ses for operat:ons under this franchi.e to Operating Licensees and such licenses shall be subject to all the conditions prescribed in the ordinance granting consent and the provisions of this franchise. ~othinq contained herein shall relieve the Grant.e from any o~ its duties and obligations under this franchise.' I HZ~BY C~RTIFY that the fore;oing ordinance was duly adopted by t~e Mayor and Common Council of the City of San Eer- nardino at a.....,.!,/ " / meeting thereof, held on the aM day ~f. ,.. , 1968 by the followinq vote, to .i t: , 'J} , ./ AY~S: Councilment....,/;.,.. (" "h_t.(.~. t_-:/~"',d h.,. ~q (;, ,~~/ x./d~X' ,~S?u(, :.... .//,';;/2. ,d/ SOES: ~.././ B'"~'~W,hu~~t7v=~ ~f CHy C er' ':'he !oresoinq ordinance is hereby approved this /......-; ea"l of ~"'J;::"<J'" / . 1968. M.yo(1( ~ cf!:~~:=c.lno I as to form: ~ I! ""'/ ,,'?(, ~,~---