HomeMy WebLinkAbout16 COX CABLE RENEWAL 06-21-99 LAW OFFICES Of
WOODRUFF~ SPRADLI1N ..- SMART
AGENDA
TO:
Honorable Mayor and Members of the City Council
City of Tustin
FROM: City Attorney
DATE: June 21, 1999
RE:
CATV Franchise Renewal--Cox Communications
NO. 16
6-21-99
RECOMMENDATION:
Adopt Resolution 99-__ establishing a process for consideration of CATV franchise
renewal and direct the City Clerk to notice a public hearing before the City Council to
consider the renewal of Cox Communications' franchise.
DISCUSSION:
Cox Communications ("Cox") has requested the City to commence franchise
renewal proceedings. The Cox franchise expires July 1,2001. The Cox request triggers
the procedures required by the Federal Communications Act of 1934 (the "Act"), as last
amended by the Telecommunications Act of 1996. Since this is the first renewal request
since the last amendment to the Act, the Council should adopt the attached resolution
establishing a process for consideration of Cox's CATV franchise renewal and setting
deadlines for action.
The CATV franchise renewal provisions of the Act require that the City commence
the renewal process within six months of the City's receipt of the cable operator's request.
Since the City received Cox's request for renewal on December 29, 1998, the City must
commence the renewal process on or before June 27, 1999. Adopting the attached
resolution constitutes commencement of the renewal procedures pursuant to the Act.
The Act actually requires an informal procedure'or a formal one at the option of
either the City or the cable operator. The informal procedure merely requires the cable
operator to submit a renewal proposal at any time, and the City may accept or deny it at
any time after a public hearing at a regular meeting, after giving public notice and an
opportunity to be heard. If the City denies the proposal, the cable operator still has the
option to request renewal through formal procedures.
Honorable Mayor and Members of the City Council
City of Tustin
June 21, 1999
Page 2
In our case, Cox Communications has requested that the City use formal
procedures for the franchise renewal. It will be our recommendation in the near future that
a formal procedure be initiated by the City Council on Media One's franchise renewal.
Once invoked, the formal procedures consist of the following steps:
.
Public hearings, community workshops, surveys or any other procedure that affords
the City residents in the franchise area appropriate notice and participation for the
purpose of:
A. Identifying the future cable-related community needs and interests, and
B,
Reviewing the performance of the cable operator under the franchise during
the current franchise term.
There is no time limitation for completing this first step. However, the
process must begin within six (6) months of the cable operator's request as
mentioned above. That is accomplished by adopting the Resolution attached
which requires a public hearing.
,
Upon completion of the proceedings in the first step above, the City may establish
a date by which the cable operator must submit a franchise renewal proposal. The
proposal must contain the material required by the City, including proposals for
operating the cable system, providing the required facilities and equipment,
upgrading the system, and other requirements established by Chapter 4 of the
Tustin City Code. The City must promptly notify the' public of its receipt of the cable
operator's proposal. We recommend that. the deadline for receipt of the cable
operator's proposal be set ninety (90) days from the City's written notification to the
cable operator that the first step above has been completed. This notification would
report the outcome of the first step and the material required to be included in the
cable operator's proposal.
e
Within four months of having received the cable operator's proposal pursuant to the
second step above, the City must renew the franchise or adopt a resolution
containing a preliminary assessment stating that the City should not renew the
franchise.
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If the City renews the franchise, it must do so by Ordinance pursuant to Tustin City
Code § 7415(c)(6). The ordinance may grant a new franchise for the 15-year term
established by Tustin City Code, or may simply amend the existing ordinance by
Honorable Mayor and Members of the City Council
City of'Tustin
June 21, 1999
Page 3
extending its term for another 15 years, or may grant a franchise for a shorter period
of time pursuant to the Ordinance.
SPECIAL PROVISIONS FOR DENIAL:
If the City adopts a resolution containing a preliminary assessment to deny the
franchise renewal, then the City must commence an administrative hearing to consider the
reasons for which the City should deny the franchise. The City must give the cable
operator and the public prompt notice of the administrative hearing.
In any
reviewing the
event, the City may deny the franchise only if it makes adverse findings in
following factors:
A,
Whether the cable operator substantially complied with the material terms of
the existing franchise and applicable law, and the City provided the cable
operator sufficient notice and an opportunity to cure any failure to comply.
S.
Whether the qualitY of the cable operator's service, including signal quality,
response to consumer complaints, and billing practices, was reasonable in
light of community needs, and the City provided the cable operator sufficient
notice and an opportunity to cure any defects. In reviewing this factor, the
City cannot consider the mix or quality of cable services or other services
provided over the system (content).
C,
Whether the cable operator has the financial, legal, and technical ability to
provide the services, facilities, and equipment as set forth in its proposal.
D,
Whether the cable operator's proposal is reasonable to meet the future
cable-related community needs and interests, taking into account the cost of
meeting such needs and interests.
At this time, it would be appropriate for the City Council to adopt Resolution 99-
and to direct the City Clerk to notice the public hearing to proceed with step Number One
of the process outlined herein. ..~i .('~
_,;./
LOIS E. JEFFREY j/ 1," L," [ OMAR S~AN-DOVAE
CC:
William A. Huston, City Manager
Tim D. Serlet, Director of Public Works, City Engineer
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RESOLUTION NO. 99-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA ESTABLISHING A PROCESS FOR
CONSIDERATION OF CATV FRANCHISE RENEWAL.
WHEREAS, the Communications Act of 1934 as last amended by the
Telecommunications Act of 1996 provides for the renewal of existing CATV franchises and
authorizes the City to require a renewal proposal and to set deadlines therefor; and
WHEREAS, Cox Communications ("Cox") has requested that the City initiate renewal
of its CATV franchise; and
WHEREAS, the City Council wishes to establish a uniform process for consideration
of CATV franchise renewal according to law.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA,
finds, determines and orders as follows:
SECTION 1'
(A) The City Clerk is hereby directed to publish notice of a public hearing at a
regular meeting of the City Council in the next 60 days on the question of the renewal of
Cox's CATV franchise. The Director of Public Works shall select the date of the meeting for
the hearing and shall provide it to the City Clerk within 2 weeks of June 21, 1999. The
Director of Public Works shall notify Cox in writing of the meeting date selected.
(B) Upon receipt of a request by a Cable Operator for a CATV'franchise renewal
within the six (6) month period commencing with the 36th month before the franchise expires
or upon determination of the Public Works Director, or the Director's designee, that renewal
procedures under this Resolution are warranted, the Public Works Director, or the Director's
designee, shall request the City Clerk. to publish notice of a public hearing before the City
Council to consider renewal of the CATV franchise.
(c)
The City Clerk's notice shall state that the purpose of the hearing will be to:
(1) Identify the future cable-related community needs and interests, and
(2)
Review the performance of the cable operator under the franchise during
the current franchise term.
The Director of Public Works shall notify the cable operator of the public
hearing time and date.
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SECTION 2:
Within fifteen (15) days of completion of the public hearing process required by
Section 1 above, the Public Works Director shall notify the cable operator of the completion
of the hearing held under Section 1 above, and shall direct the cable operator to submit a
franchise renewal proposal, which shall contain the material required by Chapter 4 of the
Tustin City Code, the cable operator's proposal for operating the cable system, providing the
required facilities and equipment, upgrading the system, and other issues raised at the public
hearing held under Section 1 above. The notice shall further provide that the cable
operator's proposal is due ninety (90) days from the date of the notice required by this
Section.
SECTION 3:
Within ninety (90) days of receiving the cable operator's proposal pursuant to Section
2 above, the Public Works Director, or the Director's designee, shall report and recommend
to the City Council whether to approve or deny the renewal of the franchise. The City
Council shall approve a renewal by ordinance. If the City Council finds it in the best interest
for the City to deny the renewal, the City Council shall adopt a resolution containing a
preliminary assessment stating that the City should not renew the franchise.
SECTION 4:
If the City Council adopts a resolution assessing that the City should not renew the
franchise, the Public Works Director shall request the City Clerk to publish notice of a public
hearing at a special meeting of the City Council to consider denial of renewal of the
franchise. Said special meeting shall take place within thirty (30) days of adoption of the
statement of non-renewal. At the conclusion of the public hearing, the City Council may deny
renewal of the franchise if it makes adverse findings in reviewing the following factors:
A. Whether the cable operator substantially complied with the material terms of
the existing franchise and applicable law, and the City provided the cable operator sufficient
notice and an opportunity to cure any failure to comply.
B. Whether the quality of the cable operator's service, including signal quality,
response to consumer complaints, and billing practices, was reasonable in light of
community needs, and the City provided the cable operator sufficient notice and an
opportunity to cure any defects. In reviewing this factor, the City cannot consider the mix or
quality of cable services or other services provided over the system (content).
C. Whether the cable operator has the financial, legal, and technical ability to
provide the services, facilities, and equipment as set forth in its proposal.
D. Whether the cable operator's proposal is reasonable to meet the future cable-
related community needs and interests, taking into account the cost of meeting such needs
and interests.
II!
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
on the__ day of ,1999.
TRACY WORLEY, MAYOR
ATTEST:
PAMELA STOKER
CITY CLERK
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