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HomeMy WebLinkAboutSS4 - Cable TelevisionAgenda Item No. SS4 July 25, 2006 Cable Television The Next Season Newport Beach City Council Tuesday, July 25, 2006 Adelphia (Time Warner) City's negotiations with Adelphia /Time Warner resulted in the following on June 27, 2006: A Consent to Transfer Agreement: City consents to the transfer the Adelphia cable television franchise to Time Warner. A Settlement & Mutual Release Agreement Settles all past claims the City has against Adelphia and Time Warner, thus compensating the City $22,339.00. A Memorandum of Understanding: TERM: Binding on Time Warner through December 31, 2016; FRANCHISE FEE = will maintain 5% fee; Ongoing PEG Grant of $0.50 per subscriber per month (roughly $120,000 per year); Initial PEG Grant of $28 /subscriber ($476,000 on a one -time basis); Directs that the City and Time Warner negotiate a new Franchise Agreement by December 31, 2006. 2 Cox Communications Proposed Franchise Agreement TERM - to April 1, 2011 (Option to extend to April 1, 2018) FRANCHISE FEE — 5% LOCAL OFFICE — within 20 miles PEG SUPPORT: Initial Capital Grant of $60 /subscriber (roughly $660,000); and Additional Capital Grant of $30 /new subscriber over 2006's numbers in 2010; and Capital Grants in lieu of ongoing PEG support PEG CHANNELS — 3 immediately, up to 2 more if needed. OTHER Drops provided to City facilities in Cox service area. Undergrounding required. Subscriber Complaint Log kept. Technical Service standards met. Assurance that changes to State or Federal law will not impact Capital Grant or Franchise Fee payments for the duration of the Franchise Term. 3 Cable TV Franchise Areas City of Newport Beach i Cable Provider Cox PAGING OGf r