HomeMy WebLinkAbout17 EXTENT CABLE SVC 05-06-96 LAW OFFICES OF
WOODRUFF~ SPRADLIN & SMAR'~
A PR~)FESSIONAL CORPORATION
AG E N
MEMORANDUM
TO:
Honorable Mayor and Members of the City Council
City of Tustin ~:~
FROM: City Attorney
DATE: April 30, 1996
RE:
Extension of Cable Television Service to Tustin Gardens
NO. 17
5-6-96.
Tustin Gardens is located within the area served by Continental Cablevision
pursuant to their nonexclusive franchise with the City of Tustin. This means that
Continental has the right to install, construct and operate and maintain a cable television
system on certain streets within the City. The franchise will expire in approximately six and
a half years. The City's ordinance defines a cable television system as a system employing
antennae, microwave, wires, wave guides, coaxial cables, or other conductors, equipment
or facilities, designed, constructed or used for the purpose of:
,
Collecting and amplifying local and distant broadcast
television or radio signals and distributing and
transmitting them;
.
Transmitting original cable cast programming not
received through television broadcast signals;
,
Transmitting television pictures, film and videotape
programs, not received through broadcast television
signals, whether or not encoded or processed to permit
reception but only selected receivers; and
,
Transmitting and receiving all other signals: digital,
voice and audio visual.
Under the terms of the City's franchise ordinance, no person, firm or corporation
within the franchisee's service area may be refused service, except the franchisee is not
required to provide service to any subscriber who does not pay the applicable connection
fee or service charge.
In this case, the apartment complex of Tustin Gardens, needs to be wired for cable
service. This is a more extensive proposition than what is required to serve an individual
single family home. In the past, a cable franchisee could count on having a monopoly of
potential subscribers. However, with the new federal Telecommunications Bill of 1996, that
will probably not be the case in as few as three to five years. In that time frame, it is
Honorable Mayor and Members of the City Council
City of Tustin
April 30, 1996
Page 2
projected that technological advances will make it possible to receive video programming
over telephone lines, and it is anticipated that direct satellite broadcasts will be available.
Consequently, the business climate is changing for cable television companies.
The management of Tustin Gardens and Continental Cablevision have been
negotiating for some months over the installation of cable television service at Tustin
Gardens. Currently, the parties are agreed on a six and a half year contract but have not
reached an agreement on the business terms for the installation. Fearing that it will not
have enough long term subscribers to cover its cost of installation, Continental Cable is
insisting on an exclusive video right to Tustin Gardens for six and half years. The
management of Tustin Gardens would be willing to contract for such exclusive rights for a
period of three (3) years. The parties disagree as to the installation cost, with Continental
Cable estimating a much higher amount than estimated by the management of Tustin
Gardens. The matter is somewhat complicated by broader negotiations between the two
(2) parties relating to properties owned by the management of Tustin Gardens in other
cities.
Since the City has an interest in ensuring that subscribers, willing to pay the
applicable connection fee or service charge are able to receive service, I recommend that
staff be directed to continue to work with both sides to promote a resolution of this matter.
LOIS E. JEFFR ,~'/,///' ~
cc: William A. Huston, City Manager
1100-00012
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