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HomeMy WebLinkAbout98-191 .t �J Resolution No. 98-191 RESOLUTION AUTHORIZING EXECUTION OF A FRANCHISE EXTENSION AGREEMENT WITH CABLE TV FUND 15-A, LTD. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Franchise Extension Agreement on behalf of the City of Elgin with Cable TV Fund 15-A, Ltd. to extend their existing cable television franchise agreement to December 9, 2002 , a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: August 12 , 1998 Adopted: August 12, 1998 Omnibus Vote: Yeas 5 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk joNEs. INTER C A B L E• November 30, 1998 VIA FEDERAL EXPRESS Eric S. Stuckey Assistant City Manager City of Elgin 150 Dexter Court Elgin, IL 60120 Re: Cable Television Franchise Extension Dear Mr. Stuckey, Enclsoed please find a fully-executed Franchise Extension Agreement between the City of Elgin and Cable TV Fund 15-A, Ltd. Thank you for your patience and cooperation. Very truly yours, Scott C. O'Donnell Counsel Enclosure cc: Dan Capasso (w/e) (39503) JONES INTERCABLE, INC. 9697 EAST MINERAL AVENUE, P.O. BOX 3309, ENGLEWOOD, COLORADO 80155-3309 TEL 303.792.31 1 1 FRANCHISE EXTENSION AGREEMENT • The undersigned, who represent themselves to be the duly authorized agents of the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City"), and CABLE TV FUND 15-A, LTD., a Colorado limited partnership, including its successors and assigns (hereinafter referred to as the "Franchisee"), having the authority to make the representations and agreements contained herein, do hereby stipulate and agree as follows: 1. A cable television franchise was granted by the City to Consolidated Cable Utilities, Inc. pursuant to Ordinance No. S-935, as amended by Ordinance No. S6-84, which among other things transferred the Franchise to Centel Cable Television Company of Illinois, and as further amended by Ordinance No. S5-94, providing for the construction, operation and maintenance of an institutional cable network in the City. By Resolution adopted September 27, 1989, (the "Resolution") the City authorized the transfer of the Franchise to Jones Intercable, Inc. ("Jones") or to any Affiliate of Jones, as that term is defined in the Resolution. By Notice provided to the City, dated December 19, 1989, Jones transferred the Franchise to Cable TV Fund 15-A, Ltd., an Affiliate of Jones. The Franchise expires on or about December 9, 1999. 2. The City and the Franchisee desire to extend the term of the franchise until December 9, 2002. During the extension of the Franchise term, the City and Franchisee shall be subject to the same terms and conditions as set forth in Ordinance No. S-935, as amended. 3. During the extension period, the representatives of the City and the Franchisee shall work together in good faith and diligently in order to consider a renewal of the Franchise pursuant to the procedures contained in Section 626 of the Cable Communications Policy Act'of 1984, 47 USC paragraph 546, as amended. 4. Notwithstanding the foregoing, by entering into this Agreement, the City and the Franchisee do not otherwise waive their rights to rely upon the rights, procedures, protections and recourse granted to them pursuant to applicable federal, state or local rule, regulation, law or precedent (specifically including, but not limited to, the Cable Communications Policy Act of 1984, as amended). The undersigned hereby agree to an extension of the Franchise under the terms and subject to the stipulations as set forth above. Dated this 25th day of September , 1998. CITY OF ELGIN Cit a .ger ATTEST: City Clerk CABLE TV FUND 15-A, LTD., A Colorado corporation, as general partner By: cc. QUAA...c. _ uth E. Warren Group Vice President, Operations (36737) 2 OFEL,. ' City of Elgin Agenda Item No. �UkdTGD CC.6:' July 16 , 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Jones Intercable Television Franchise Extension PURPOSE This purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a request from Jones Intercable to extend their existing cable television franchise agreement with the City an additional three years . BACKGROUND Jones Intercable currently holds a cable television franchise 411 with the City of Elgin. Ownership of the cable system and the franchise agreement was transferred to Jones Intercable from Centel in 1989 . The current franchise agreement expires on December 9, 1999 . At the July 9, 1997 meeting, the City Council directed staff to enter into "informal" negotiations with Jones regarding renewal of their cable television fran- chise . Staff met with Jones several times to discuss terms of a franchise renewal during 1997 but final agreement was not reached. In April of 1998, Jones Intercable announced its intention to sell the Elgin operation and other Chicago-area holdings to TCI, the nation ' s largest cable operator, which has since announced a proposed merger with AT&T. Any transfer of ownership would be governed by Federal Communications Commission (FCC) regulations which require approval by the franchise authority (the City) . The process for transfer allows the localfranchise authority 120 days to review and act upon the proposed transfer. The FCC process is initiated by the current franchise holder. To date, Jones Intercable has not filed the necessary forms to begin the franchise transfer process . Recently, Jones Intercable officials approached the City about a three-year extension of the existing franchise agreement . Attached is language proposed by Jones Intercable that would extend the terms of the existing franchise agreement to December 9, 2002 . The extension does not limit in any way the • City' s rights in renewal and/or transfer of the franchise to another company. Jones Intercable Franchise Extension July 16 , 1998 Page 2 • A franchise extension offers the City some benefits that make this an attractive opportunity. Given the impending transfer of ownership, the franchise extension offers additional time to evaluate the quality of the new operator. Furthermore, the additional three years would allow the City the opportunity to utilize the franchise renewal process as leverage to address any service issues/shortcomings with the new operator as well as potential service enhancements . The City would also continue to receive the benefits present in the existing franchise such as payment of franchise fees based on a gross revenue definition, including advertising and home shopping revenue, maintenance of the ELGINET institutional network, and operation of the local television studio. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . 0/0L/FINANCIAL IMPACT , The City would be guaranteed of receiving cable television franchise fees at five percent of annual gross revenue under the current definition. The definition of annual gross revenue currently utilized is favorable to the City in that it • includes advertising and home shopping revenue in the calcula- tion. In 1997, cable television franchise fees totalled $547, 780 . LEGAL IMPACT W'P�/ The City would maintain all rights under federal and state law pertaining to both the transfer and renewal of the cable television franchise . ALTERNATIVES The City Council may approve, alter, or deny the cable televi- sion franchise extension. RECOMMENDATION It is recommended that the City Council approve the extension of the cable television franchise with Jones Intercable to December 9 , 2002 . Respectfully submitt d, • a J•• ce AParker • City Manager amp • Attachment • FRANCHISE EXTENSION AGREEMENT The undersigned, who represent themselves to be the duly authorized agents of the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City"), and CABLE TV FUND 15-A, LTD., a Colorado limited partnership, including its successors and assigns (hereinafter referred to as the "Franchisee"), having the authority to make the representations and agreements contained herein, do hereby stipulate and agree as follows: 1. A cable television franchise was granted by the City to Consolidated Cable Utilities, Inc. pursuant to Ordinance iNo. S-935, as amended by Ordinance No. • S6-84, which among other things transferred the Franchise to Centel Cable Television. Company of Illinois, and as further amended by Ordinance No. S5-94, providing for the construction, operation and maintenance of an institutional cable network in the City. By Resolution adopted September 27, 1989, (the "Resolution") the City authorized the transfer of the Franchise to Jones Intercable, Inc. ("Jones") or to any Affiliate of Jones, as that term is defined in the Resolution. By Notice provided to the City, dated December 19, 1989, Jones transferred the Franchise to Cable TV Fund 15-A, Ltd., an Affiliate of Jones. The Franchise expires on or about December 9, 1999. 2. The City and the Franchisee desire to extend the term of the franchise until December 9, 2002. During the extension of the Franchise term, the City and Franchisee shall be subject to the same terms and conditions as set forth in Ordinance No. S-935, as amended. 3. During the extension period, the representatives of the City and the • Franchisee shall work together in good faith and diligently in order to consider a • renewal of the Franchise pursuant to the procedures contained in Section 626 of the Cable Communications Policy Act of 1984, 47 USC paragraph 546, as amended. 4. Notwithstanding the foregoing, by entering into this Agreement, the City and the Franchisee do not otherwise waive their rights to rely upon the rights, procedures, protections and recourse granted to them pursuant to applicable federal, state or local rule, regulation, law or precedent (specifically including, but not limited to, the Cable Communications Policy Act of 1984, as amended). The undersigned hereby agree to an extension of the Franchise under the terms and subject to the stipulations as set forth above. Dated this day of , 1998. CITY OF ELGIN • City Manager ATTEST: City Clerk CABLE TV FUND 15-A, LTD., A Colorado corporation, as general partner By: Ruth E. Warren Group Vice President, Operations • (36737) 2