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HomeMy WebLinkAbout03/02/1993, C-5 - NINETY DAY EXTENSION TO THE SONIC CABLE TELEVISION FRANCHISE lll�lyp��llln'liin=l ll� MEETING DATE: UI NwIIPp`u ctty of san L.Js ostspo -z-1,3 ITEM NUM COUNCIL AGENDA REPORT FROM: Ken Hampian, Assistant City Administrative Officer Prepared By: Deb Hossli, Administrative Analyst )V SUBJECT: Ninety day extension to the Sonic Cable Television Franchise CAO.RECOMMENDATION: By motion, approve agreement extending Sonic Cable Television's Franchise Agreement for ninety days. DISCUSSION: As the City Council is aware, the City is in the process of negotiating a new franchise agreement with Sonic Cable Television. The current franchise is set to expire on March 31, 1993. Because negotiations are expected to continue beyond March 31, 1993, staff recommends that we extend the franchise under the same terms and conditions for an additional ninety days (through June 30, 1993). The extension will give the cable company and staff adequate time to thoroughly negotiate the City's franchise objectives and, in particular, evaluate the impact of the Federal Communications Commission's rulings regarding basic cable rate regulation (expected in April). Under this new timeframe, staff would expect to present a franchise agreement to the City Council for consideration by June of this year. CONCURRENCES: Sonic Cable Television concurs with the franchise agreement extension. ATTACHMENTS: "1" - Agreement I\fran-son I EXTENSION OF FRANCHISE AGREEMENT This Agreement is made and entered into this day of , 1993, 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 Cable 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, 1993 ; and WHEREAS, Sonic has requested that its franchise be renewed by the City; and WHEREAS, the City Council 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 Council has determined that the public interest would be served by granting to Sonic an extension of the franchise to and including June 30, 1993 , 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 June 30, 1993 , pending finalization of the renewal franchise agreement. 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. 15:SncExt.agr 0133222/020193 1 j PASSED AND ADOPTED by the City Council of the City of San Luis Obispo at a regular meeting of said Council held on the _ day of 1993 , by the following vote of said Council : AYES: NOES: ABSENT: SONIC CABLE LEASING CITY OF SAN LUIS OBISPO CORPORATION By:. By: Christopher Cohan Peg Pinard Mayor ATTEST: Diane Gladwell City Clerk APPROVED AS TO FORM: d A 15:SncExt.agr 0133222/020193 2 C_0