HomeMy WebLinkAbout11/29/1994, C-1 - EXTENSION OF FRANCHISE AGREEMENT WITH SONIC CABLE TELEVISION M G GATE:
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COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: Ken Hampian, Assistant City Administrative Officer
Prepared By: Deb Hossli, Assistant to the City Administrative Officer
SUBJECT: Extension of Franchise Agreement with Sonic Cable Television
CAO RECOMMENDATION:
1) Approve and authorize the Mayor to execute an extension to the City's franchise
agreement with Sonic Cable Television for one month (through December 31, 1994).
2) Authorize the City Administrative Officer to extend the franchise on a month-to-month
basis thereafter through March 31, 1995.
DISCUSSION:
Based on Council action at the November 1, 1994 meeting, staff is in the process of invoking
the formal franchise renewal proceedings with Sonic Cable Television. The letter advising Sonic
that the City is invoking the formal proceedings will be mailed out the week of November 21,
1994. In that letter, Sonic will be requested to provide a "best and final" franchise proposal
offer to the City within sixty days. Once this proposal is received, the City will have up to four
months to complete its review and determine whether the proposal meets the community's cable
related needs.
During this next phase of negotiations, staff recommends that the City continue to extend the
franchise with Sonic on a month-to-month basis (the current franchise is scheduled to expire on
November 30, 1994). As such, it will be necessary for the Council extend the franchise for one
month (through December 31, 1994). Staff would then recommend that the City Administrative
Officer be authorized to execute one month extensions to the franchise through March 31, 1995.
This should give staff adequate time to receive and review Sonic's proposal and provide the
Council with a recommended course of action.
In addition, it is important to note that the City will be sending another letter to Sonic the week
of November 21 requesting reimbursement for underpayment of franchise fees (this issue was
discussed at the November 1, 1994 meeting).
ATTACEMIENTS: '
Agreement
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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
November 30, 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 December
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:
Greg Blume, Sonic Cable General Manager
Page.2
Sonic Agreement s
CITY OF SAN LUIS OBYSPO
By - -
Peg.Pinard; Mayor
ATTEST:
By:
Diane Gladwell, City Clerk
APPROVED AS TO FO '
ity _ . rney
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Council Agenda Tuesday, November 29, 1994
► C-2 RESOLUTIONS OF APPRECIATION (GLADWELL)
Consideration of resolutions of appreciation for Council Member Penny Rappa and Mayor
Peg Pinard for their many years of service to the City of San Luis Obispo.
RECOMMENDATION: Adopt Resolutions of Appreciation; direct City Clerk to conform
resolutions with appropriate votes (Council Member Rappa and Mayor Pinard not listed on
vote for their respective resolutions.) ,
TO BE DISTRIBUTED AT A LATER DATE.
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