HomeMy WebLinkAbout16 CABLE ON-LINE SVCS 03-15-99 LAW OFFICES OF
~VOODRUFF~ SPRADLIN & b~vlART
A PROFESSIONAL CORPORATION
NO. 16
3-15-99
AGENDA
MEMORANDUM
TO"
FROM:
DATE:
RE:
Honorable Mayor and Members of the City Council
City of Tustin
City Attorney
March 10, 1999
Stipulation Regarding Provision of Cable On-Line Information Services by
Media One
RECOMMENDATION:
Approve execution of the attached Stipulation, with su~;h modifications as
approved by the City Attorney,
DISCUSSION'
MediaOne has a' franchise to install, construct and operate a cable television
system in the City of Tustin. MediaOne is proposing to install facilities in the public right
of way that will both improve cable television service and will also permit subscribers to
have internet access. This new service is called Cable On-Line Information Service. It
is the City Attorney's opinion that the current cable television franchise does not cover
this service and that a new franchise is required. MediaOne disagrees and believes
that they may' pay franchise fees for this service under their current cable television
franchise. In order to expedite this matter so as to permit MediaOne to install their
facilities we have proposed the attached stipulation. Under the stipulation MediaOne
would pay franchise fees under its current .cable television franchise for the internet
service, but if a court or the FCC ruled that such was illegal, they would cease paying
franchise fees. In that event, the City reserves the right to require MediaOne to obtain a
separate franchise for these services.
LOIS E. JEFFREY
Enclosure
cc: William A. Huston, City Manager
101639\1
STIPULATION REGARDING PROVISION OF CABLE ON-LINE
INFORMATION SERVICES BY MEDIAONE
WHEREAS, MediaOne of Los Angeles, Inc, is the holder of a
nonexclusive cable t.v. franchise pursuant to Ordinance No. 1002 and Article 7,
Chapter 4 of the Tustin City Code; and
WHEREAS, MediaOne desires to provide Cable On-Line Information
Services to customers in the City of Tustin; and
WHEREAS, MediaOne believes that it may provide Cable On-Line
Information Services under its existing franchise with the City and intends to pay
franchise fees on revenues which MediaOne receives from subscribers to its
Cable On-Line Information Service in the City; and
WHEREAS, the City believes that MediaOne's cable franchise is limited to
cable television service and does not include Cable On-Line Information Services
and that for such services MediaOne would require a separate franchise; and
WHEREAS, the parties desire to preserve their respective legal rights on
these issues and for the purpose of expediency desire to enter into this
stipulation to satisfy the practical needs of both parties.
NOW, THEREFORE, based on the mutual promises and covenants
herein, the parties agree as follows:
1. MediaOne shall pay franchise fees on gross revenues which
MediaOne receives from subscribers in Tustin to.its Cable On-Line Information
Service. The amount of the franchise fee and all of the terms and conditions of
the payment of the franchise fee shall be governed by Ordinance No. 1002 and
Chapter 4 of Article 7 of the Tustin City Code. It is specifically agreed that gross
revenues under the franchise agreement for the purposes of this stipulation shall
include revenues received from subscribers to Cable On-Line Information
Service. MediaOne shall account separately for these franchise fees from its
cable television franchise fees.
2. Should Congress, the FCC, or a court of competent jurisdiction
determine that Cable On-Line Information Service offered over a cable system is
not a cable service, MediaOne expressly reserves the right to cease paying
franchise fees on such service under the existing cable television franchise with
the City.
3. In the event that MediaOne ceases paying franchise fees under its
cable television franchise in the City, the City reserves the right to require
MediaOne to enter into a separate franchise agreement with the City for the
provision of Cable On-Line Information Services.
Nothing herein is intended to extend or alter MediaOne's cable television
franchise except as specifically provided herein.
Dated:
MediaOne of Los Angeles, Inc.
By:
Title:
Dated:
City of Tustin
By:
Title:
APPROVED AS TO FORM
Lois E. Jeffrey
City Attorney