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HomeMy WebLinkAboutS16 - Cox Communications Franchise AgreementCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. S16 July 11, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: CABLE TELEVISION: RESOLUTION NO. 2006- EXPRESSING THE CITY'S INTENT TO ADOPT A FRANCHISE AGREEMENT WITH COX COMMUNICATIONS ISSUE: Should the City prepare to adopt a Franchise Agreement with Cox Communications? Adopt Resolution No. 2006 -_ expressing the City's intent to adopt a Cable Communications Franchise Agreement with Cox Communications during a public hearing. DISCUSSION: The City Charter (Section 1301 - see below) directs us to notice and conduct a public hearing in advance of considering a new franchise. Because City staff intends to bring to Council a draft Cable Communications Franchise Agreement (and its related ordinance) with Cox Communications on July 25`", the action proposed in this staff report meets the requirements of Section 3101 relating to a Resolution of Intention for the public hearing. Section 1301. Resolution oflntention. Notice and Public Hearing. Before granting any franchise, the City Council shall pass a resolution declaring its intention to grant the same, stating the name of the proposed grantee, the character of the franchise and the terms and conditions upon which it is proposed to be granted. Such resolution shall fix and set forth the day, hour and place when and where any persons having any interest therein or any objection to the granting thereof may appear before the City Council and be heard thereon. It shall direct the City Clerk to publish said resolution at least once, within fifteen days of the passage thereof, in the official newspaper. Said notice shall be published at least ten days prior to the date of hearIng . At the time set for the hearing the City Council shall proceed to hear and pass upon all protests and its decision thereon shall be final and conclusive. Thereafter it may by ordinance grant the franchise on the terms and conditions specified In the resolution of Resolution of Intent- Cable Franchise Agreement July 11, 2006 Page 2 intention to grant the same, subject to the nght of referendum of the people, or it may deny the same if the City Council shall determine that changes should be made in the terms and conditions upon which the franchise fs proposed to be granted, a new resolution of intention shall be adopted and like proceedings had thereon. Committee Action: None. Public Notice: This agenda item may be noticed according to the Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Submitted by: Dave Kiff Assistant City Manager Attachments: Resolution 2006- Resolution of Intent— Cable Franchise Agreement July 11, 2006 Page 3 RESOLUTION NO. 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING TO CONSIDER THE GRANTING OF A NON - EXCLUSIVE CABLE SYSTEM FRANCHISE TO COXCOM INCORPORATED WHEREAS, the City Council finds and determines that providing cable service within the City is a vital public service and is a matter of great public concern because cable providers use the public right -of -way, provide Public, Educational, and Governmental ( "PEG') access within the franchise area, and collect personal information regarding subscribers creating a need to protect the rights of subscribers; and, WHEREAS, non - exclusive franchises for use of the public right -of -way to provide cable services will promote the public health, safety, and welfare by promoting permanence and stability among those businesses wishing to provide such service and accountability to the City for compliance with current and future state and federal mandates; and, WHEREAS, pursuant to Article XIII of the City Charter and pursuant to Newport Beach Municipal Code section 5.44.030, the City is authorized to grant a franchise to provide cable service with private cable service providers; and, WHEREAS, CoxCom Incorporated ( "Cox ") has requested a non - exclusive franchise to provide cable service. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: A public hearing shall be conducted on July 25, 2006, at 7:00 p.m., or as soon thereafter as practical, in the City Council Chambers, 3300 Newport Boulevard, Newport Beach, California, to consider the granting of a franchise to Cox pursuant to the following terns and conditions: a. Franchise effective date: The franchise will be effective upon approval of the City Council. b. Franchise fee: Five percent (5 %) of gross annual revenue. Resolution of Intent — Cable Franchise Agreement July 11, 2006 Page 4 c. Grant: Sixty dollars ($60.00) per basic service tier subscriber of Cox in the City as of the effective date with an additional grant of thirty dollars ($30.00) per basic tier subscriber located in newly constructed units as of January 1, 2010. d. Term of Franchise: From the effective date to April 11, 2011 with an option to extend the initial term for seven (7) years to April 1, 2018. e. PEG access: Three (3) PEG channels with the option to increase the number of channels up to five (5) PEG channels depending upon demand. f. Letter of credit: Seventeen dollars and twenty five cents ($17.25) per subscriber, but not less than one hundred thousand dollars ($100,000.00). g. Laws: Franchisee shall comply with all State, Federal laws and regulations, terms and conditions of the franchise agreement, and City Charter and Municipal Code. Section 2: The City proposes to offer a non - exclusive cable service franchise to Cox which is presently licensed and permitted to conduct business in the City. Persons who have an interest in or objection to the proposed franchise may appear before the City Council and be heard on the date and time listed above. Section 3: This Resolution of Intention shall be published in the City's official newspaper within fifteen (15) days of its adoption and at least ten (10) days prior to July 25, 2006. ADOPTED this day of 200_ Don Webb, Mayor ATTEST: LaVonne Harkless, City Clerk