HomeMy WebLinkAbout03/15/1994, C-3 - SONIC CABLE TELEVISION FRANCHISE EXTENSION ����HII�911�IBIIIII�uI,IlUlll MEETING DATE:
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COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: Ken Hampian Assistant.City Administrative Officer)-
Prepared By: Deb Hossli, Administrative Analyst>
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SUBJECT: Sonic Cable Television Franchise Extension
CAO RECOMMENDATION: Approve and authorize the Mayor to execute a two month
extension to the City's franchise agreement with Sonic Cable Television.
DISCUSSION:
In December of last year, the Council authorized a three month extension (through March
31, 1994) to the City's franchise agreement with Sonic Cable Television. At that time, staff
reported that negotiations were not proceeding smoothly and, depending on the level of
cooperation received from Sonic, the three month extension may not be sufficient to
conclude negotiations.
Since Council approval of the extension, staff has met with Sonic once. During this session,
it became apparent that Sonic's "best and final" offer was not sufficient to support a long
term franchise agreement (10 to 15 years) with the City. Issues related to funding for PEG
access and reimbursement for consultant fees are still far from resolution. As such, the
City's cable advisor, Carl Pilnick, has recommended that we pursue shorter term franchise
options (3, 5, and 7 years) with Sonic.
It was our original intention to prepare the short term options and meet with Sonic by
February of this year. However, the earthquake in Los Angeles caused significant damage
to Mr. Pilnick's office. This, coupled with the recent departure of Sonic's General Manager,
has delayed the process. As such, staff is requesting a two month extension (through May
31,4994) so that we can meet with Sonic to discuss shorter term franchise options. It is our
hope that this will be our last request for an extension to the franchise. Again, it is
important to emphasize that cable law clearly favors cable companies in franchise renewal
proceedings. Therefore, staff's ability to conclude negotiations by May 31, 1994 is largely
dependent on the level of cooperation we receive from Sonic. Staff will keep Council
apprised of our progress.
ATTACHMENT:
Resolution extending franchise
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EXTENSION OF FRANCHISE AGREEMENT
This Agreement is made and entered into this _ day of 1994, by
and between the City of San Luis Obispo, a duly authorized municipal corporation (the
"City") and Sonic Cable Leasing Corporation, an Alaska corporation ("Sonic").
WHEREAS, Sonic has operated a cable television system ("System") in the City
pursuant to a franchise agreement ("Franchise Agreement") entered into between the City
and Sonic Cable TV, a California corporation, by Ordinance No. 790, passed December 19,
1978, and effective retroactively April 1, 1978, and transferred to Sonic Leasing Corporation
by Resolution No. 6728, dated December 5, 1989; and
WHEREAS, the franchise under which Sonic has operated its system expires on
March 31, 1994; and
WHEREAS, Sonic has requested that its franchise be renewed by the City; and
WHEREAS, the City has determined that the public interest would be served by
negotiating a renewal of the franchise to Sonic; and
WHEREAS, Sonic and the City are in the process of negotiating and drafting a
renewal franchise agreement; and
WHEREAS, the City has determined that the public interest would be served by
granting to Sonic an extension of the franchise pending finalization of the renewal franchise
agreement.
NOW, THEREFORE, the City and Sonic do hereby agree as follows:
1. The City hereby grants to Sonic an extension of the franchise to and including May
31, 1994.
2. Except as otherwise provided herein, all terms and conditions set forth in the
Franchise Agreement shall remain in full force and effect.
3. It is mutually agreed by the City and Sonic that when a renewal franchise agreement
is reached and entered into by the City Council of San Luis Obispo and Sonic, the
term of this Extension shall immediately expire.
SONIC CABLE LEASING CORPORATION
By:
Sonic Cable General Manager
C �3-�
Page 2
Sonic Agreement
CITY OF SAN LUIS OBISPO
By:
Peg Pinard, Mayor
ATTEST:
By:
Diane Gladwell, City Clerk
APPROVED AS TO FORM:
By:
ge en, ty 101orney
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