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Home My WebLink About09 AT&T RENEWAL 01-06-03 ~NO.q AGENDA REPORT MEETING DATE: JANUARY 6, 2003 TO: FROM' SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ADMINISTRATIVE SERVICES DIVISION COMCAST/AT&T BROADBAND FRANCHISE RENEWAL SUMMARY · -- On October 7, 2002, the City Council adopted Urgency Ordinance No.. 1261 extending th'e Cable Television Franchise with Media One of Los Angeles, Inc. dba AT&T Broadband until January 6, 2003. Subsequently, on November 18, 2002, AT&T Corporation and Comcast Corporation merged into AT&T Comcast Corporation. As a result of this..action, on December 16, 2002, the City Council adopted Resolution No. 01-120 conditionally consenting to the merger of AT&T Corporation and Comcast Corporation to form AT&T Comcast Corporation as the parent company of the City's Cable Television System Franchise, Media One of Los Angeles, Inc. In connection with the closing of the merger, the name of the new parent company was changed from "AT&T Comcast Corporation" to "Comcast Corporation" and the name of the City's cable operator was ~anged from "Media One of Los Angeles, Inc." to "Comcast of Los Angeles, Inc." It. is ~commended that the Cable TV Franchise with Comcast of Los Angeles, Inc. be extended ninety days until March 28, 2003 to allow Comcast Corporation to meet the conditions of Resolution 01- 120 and allow City staff to negotiate an acceptable franchise renewal. RECOMMENDATION It is recommended that the City Council adopt Urgency Ordinance No. 1265 extending a Cable Television Franchise with Comcast of LoS Angeles, Inc. until March 28, 2003. FISCAL IMPACT None at this time. The City collects franchise fees from cable system operators as compensation for the use of the Public Right-of-way and to defray the cost of franchise administration. The operator pays 5% of the gross revenues from operations in Tustin. BACKGROUND On November 18, 2002, AT&T Corporation and Comcast Corporation merged into AT&T Comcast Corporation. AT&T Corporation was the parent company of Media One of Los Angeles, Inc., which was doing business in the City as AT&T Broadband. In connection with the merger, the name of the new parent company was changed from "AT&T Comcast Corporation" to "Comcast Corporation" and "Media One of Los Angeles inc." has changed its name to Comcast of Los Angeles, Inc. The name change of the cable operator, Media One of Los Angeles, Inc. will not impact the local brand name as cable service will continue to be provided by Comcast.of Los qgeles, Inc. under the name AT&T Broadband. Comcast/AT&T Broadband Franchise Renewal January 6, 2003 Page 2 The City Council, through Resolution No. 01-120, placed the following conditions on the City's concept of the merger: 1. The Franchisee shall submit to the City by December 31, 2002, adequate documentation certifying compliance of their physical plant with all applicable California Public Utilities Commission and Electrical Code requirements. 2. Pursuant to the AT&T offer letter dated October 29, 2002 and submitted to the City by the Franchisee, 'the Franchisee shall pay to the City the minimum sum of Five Thousand Dollars to reimburse the City for physical plant inspection costs by January 6, 2003. 3. The Franchisee s~hall submit documentation within sixty days demonstrating compliance with FCC Customer Standards for the fourth quarter of 2002. DISCUSSION Comcast Corporation is currently performing inspections of their physical plant and will comply with all the conditions. The franchise extension of ninety days will allow staff to analyze all the required submittals and to allow for negotiations with the new parent corporation's management team for franchise renewal. It is recommended that the existing Cable Television Franchise be extended for 90 days until March 28, 2003 to allow for a Franchise Renewal Agreement to be negotiated with Comcast Corporation. Tim D. Serlet, Public Works DirectodCity Engineer TDS:JM:ccg:Comcast AT&T Broadband Franchise Renewal 1-6-03.doc Administrative Services Manager, Public Works Department Exhibits: 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1265 AN URGENCY ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA, EXTENDING A CABLE TELEVISION FRANCHISE WITH COMCAST OF LOS ANGELES, INC., DBA AT&T BROADBAND UNTIL MARCH 28, 2003 WHEREAS, Comcast of Los Angeles, Inc. formerly Media One of Los Angeles, Inc., dba AT&T Broadband ("Media One") holds a non-exclusive cable television Franchise in the City of Tustin (the "City") as successor-in-interest to Continental Cablevision, Inc., pursuant to Ordinance No. 1002; and WHEREAS, Comcast's Franchise expired July 6, 2002 pursuant to Section 4 of Ordinance No. 1002; and WHEREAS, the City granted an extension to Comcast's Franchise on June 17, 2002 to exl~ire on August 5, 2002 pursuant to Urgency Ordinance No. 1254; and WHEREAS, the City granted an extension to Comcast's Franchise on August 5, 2002 to expire on September 5, 2002 pursuant to Urgency Ordinance No. 1256; and WHEREAS, the City granted an extension to Comcast's Franchise on September 3, 2002 to expire on October 5, 2002 pursuant to UrgenCy Ordinance No. 1258; and WHEREAS, the City granted an extension to Comcast's Franchise on September 16, 2002 to expire on October 7, 2002 pursuant to Urgency Ordinance No. 1259; and WHEREAS, the City granted an extension to Comcast's Franchise on October 7, 2002 to expire on January 6, 2003 pursuant to Urgency Ordinance No. 1261; and WHEREAS, the City has completed a thorough review of Comcast's compliance with the Franchise, Municipal Code, State and Federal requirements and concluded that certain deficiencies require corrective action; and WHEREAS, the City has issued corrective notices to Comcast and is awaiting a satisfactory response; and WHEREAS Comcast has commenced efforts to comply with the City's corrective notices; and WHEREAS, the City has not verified full compliance with FCC customer service standards for all reporting periods; and WHEREAS, the City has not verified full compliance with National, state and Local requirements for its physical plant; and l0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance No. 1265 Page 2 WHEREAS, Tustin City Code § 7415(c)(6) provides that the City Council shall grant cable television Franchises by ordinance; and WHEREAS, this urgency ordinance is necessary for the immediate protection of the public health, welfare, and general safety in that the extension of Comcast's Franchise is necessary to: regulate Comcast's access to the public rights-of-way which may conflict with the public use thereof; insure correction of defective electrical connections to residential, commercial and industrial buildings; continue to provide local access channels for government and emergency information; regulate subscriber service; and insure accurate and complete franchise payments. THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. FRANCHISE EXTENSION. The cable television Franchise granted to Comcast of Los Angeles, Inc., formerly Media One of Los Angeles, Inc. dba AT&T Broadband pursuant to Ordinance No. 1002 and extended until January 6, 2003 by Urgency Ordinance No. 1261 is hereby extended to expire on March 28, 2003. SECTION 2. URGENCY. This urgency ordinance is necessary for the immediate protection of the public health, welfare, and general safety in that the extension of Comcast's Franchise is necessary to: regulate Comcast's access to the public rights-of-way which may conflict with the public use thereof; insure correction of defective electrical connections to residential, commercial and industrial buildings; continue to provide local access channels for government and emergency information; regulate subscriber service; and insure accurate and complete franchise payments. SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsection, subdivision, sentence, clause, phrase, or portions thereof be declared invalid or unconstitutional. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6th day of January, 2003. Pamela Stoker City Clerk Tracy Wills Worley, Mayor STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) SS CERTIFICATION FOR URGENCY ORDINANCE NO. 1265. PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Urgency Ordinance No. 1265 was passed and adopted at a regular meeting of the City Council held on the 6th day of January, 2003 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Pamela Stoker, City Clerk