HomeMy WebLinkAbout02/14/1995, C-2 - SONIC CABLE LEASING CORPORATION FRANCHISE RENEWAL 1Il�hlll 111 1111 I I ".7 o(f� MEETING GATE:
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COUNCIL AGENDA REPORT ITEM NUMBER/LM.
FROM: Ken Hampian, Assistant City Administrative Officer ((�'
Prepared By: Deb Hossli, Administration
SUBJECT: Sonic Cable Leasing Corporation Franchise Renewal
CAO RECOMMENDATION: Adopt a resolution declaring the City's intention to grant a
fifteen year franchise to Sonic Cable Leasing Corporation and setting a public hearing for
March 7, 1995.
DISCUSSION:
The City has been meeting with the Sonic Cable Leasing Corporation since early 1993 to
develop a mutually acceptable renewal franchise agreement. Up until very recently, these
negotiations have proceeded at a slow pace. Over the last two weeks, however, both sides
have made significant movement on the key issues associated with the franchise agreement.
As such, City staff and Sonic are now prepared to present a franchise proposal to the
Council that meets the community's cable related needs. Key components of this proposal
include:
■ Type: Non-exclusive
■ Term: 15 years
■ Franchise Fees: 5% of gross revenues
■ System Rebuild: Cable System will be upgraded to 78 channels (with fiber to
the serving area) within 3 years of agreement execution.
■ PEG Access Provisions: The cable operator will establish a PEG Fund for
equipment and facilities; provide channel capacity to accommodate PEG
access needs; and wire and equip the Council Chambers at City Hall and the
Community Room with live cablecasting capabilities, and provide a cable link
to San Luis High School.
■ Future Upgrades: The City will be able to require the cable operator to
make upgrades to cable service or the cable system under certain specified
circumstances.
■ Enforcement Provisions: Practical enforcement measures have been included
in the proposed franchise to insure that the cable operator lives up to its
commitments (e g., system upgrade, customer service standards, etc.).
In order for the Council to formally consider and act on the franchise proposal, the City
must first adopt a resolution(attached) that declares the City's intention to grant a franchise
to the Sonic Cable Leasing Corporation and sets a public hearing for March 7, 1995 to act
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COUNCIL AGENDA REPORT
on the franchise proposal (this is a charter requirement). Any community members
interested in commenting to the Council on the franchise will have an opportunity at that
hearing. In addition, an agenda report will be prepared for the March 7, 1995 meeting that
provides a more detailed analysis of the recommended franchise agreement.
It is important to note that in November of last year the City Council invoked the formal
franchise renewal process with Sonic. This action required Sonic to provide the City with
a "best and final' franchise renewal proposal by February 3, 1995. Because staff has been
able to negotiate the current proposal "informally", staff has agreed to extend the deadline
for submitting the formal proposal to the City to March 17, 1995. As such, if the Council
chooses not to adopt the proposal presented on March 7, 1995, Sonic would still have ten
days to submit a 'best and final offer" to the City under the formal process.
ATTACHMENTS:
Resolution
-a- L
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN LUIS OBISPO DECLARING THE CITY'S INTENT TO
GRANT A FIFTEEN YEAR FRANCHISE TO
SONIC CABLE LEASING CORPORATION AND SETTING
A PUBLIC HEARING FOR MARCH 7, 1995
WHEREAS, Sonic Cable Leasing Corporation notified the City in 1991 of their
desire to renew their cable television franchise that was scheduled to expire in April of 1993;
and
WHEREAS, upon receiving this notification from Sonic Cable Leasing Corporation,
the City began preparing for the renewal process. Several studies and surveys were carried
out to assess the capabilities of the current cable system and ascertain the community's
future cable related needs. The results of these studies and surveys were used to create
formal franchise renewal objectives to guide the City through the franchise renewal process;
and
WHEREAS, the City began meeting with Sonic Cable Leasing Corporation in early
1993 to develop a mutually acceptable franchise renewal agreement. Because the City and
Sonic Cable Leasing Corporation were not able to reach agreement on a new franchise prior
to the April 1993 franchise expiration date, the City and Sonic Cable Leasing Corporation
have mutually agreed to extend the existing.franchise for short-term increments until an
acceptable franchise agreement is developed; and
WHEREAS, City staff and Sonic Cable Leasing Corporation have now developed a
draft franchise renewal agreement for the City Council's consideration that meets the
community's cable related needs. This proposal contains the following key provisions:
■ Type: Non-exclusive
■ Term: 15 years
■ Franchise Fees: 5% of gross revenues
■ System Rebuild: Cable System will be upgraded to 78 channels (with fiber to
the serving area) within three years of agreement execution.
■ PEG Access Provisions: The cable operator will establish a PEG Fund for
equipment and facilities; provide channel capacity to accommodate PEG
access needs; and wire and equip,the Council Chambers at City Hall and the
Community Room with live cablecasting capabilities, and provide a cable link
to San Luis High School.
■ Future Upgrades: The City will be able to require the cable operator to
make upgrades to cable service or the cable system under certain speed
circumstances.
WHEREAS,the City has extended the deadline for submittal by Sonic Cable Leasing
Corporation of a formal franchise renewal proposal from February 3, 1995 to March 17,
1995.
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Resolution No.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO THAT:
1. A public hearing will be held on March 7, 1995 at 7 pm in the Council Chambers
of City Hall at which time it is the intention of the City Council to grant a fifteen
year franchise to Sonic Cable Leasing Corporation.
2. Any persons having any interest in the franchise renewal or any objection to the
granting of the franchise renewal may appear before the Council and be heard
thereon.
3. The City Clerk will publish this resolution at least once within fifteen days of its
passage in a newspaper in the City of San Luis Obispo.
Upon motion of , seconded by and
on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of , 1995.
Mayor Allen Settle
ATTEST:
Diane Gladwell, City Clerk
APPROVED:
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