HomeMy WebLinkAbout1977-09-20; City Council; 5207; Cable Television Franchising'' 9 )• CITY OF CARLSBAD '
AGENDA BILL NO.
DATE. September. 2$, 1977
DEPARTMENT:
Subject:
CABLE TELEVISION FRANCHISING
Statement of the Matter
To complete the process of granting cable television franchises
in the City, there are two major steps remaining.
The first step requires four separate actions by the City Council:
1. The adoption of changes to Chapter 5.28 of the Carlsbad
Municipal Code as recommended by the cable consultants shown
as Exhibit 'A' .
2. The adoption of a Resolution of Intention to grant franchises
as required by Chapter 5.28.080 (2) of the Carlsbad Municipal
Code, Exhibit 'B1 .
3. The receipt and referral to the City Clerk of a franchising
ordinance as required by Chapter 5.28.020 (2) of the Carlsbad
Municipal Code, Exhibit 'C'.
4. Setting of a public hearing at which time the franchising
ordinance is to be adopted and franchises awarded as required
by Chapter 5.28.020 (2) of the Carlsbad Municipal Code.
The second step involves the public hearing, adoption of the
franchising ordinance and award of franchises.
To initiate these final steps, the attached exhibits are forwarded
for Council consideration and action.
Exhibit
Exhibits A, B, C (referenced above)
Recommendation
Introduce Ordinance No.
By motion approve form of Franchise.
Adopt Resolution of Intention No . $ ' £ // , setting hearing.
Council action1 s .
9-22-77 Resolution #5211 was adopted, setting the matter to public hearing, and
stating Council's intention to consider adopting a franchise ordinance.
/
AGENDA BILL NO. 5207 -2- September 20, 1977
Council action
10-4-77 Ordinance #6057 was introduced for a first reading, amending
TtlecSr Chapter 5.28 of the Municipal Code, to revise the
regulations regarding the Franchising of Cable Television
Systems in the City of Carlsbad.
10-18-77 Council adopted Ordinance #6057.
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ORDINANCE NO. 6057
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AMENDING
TITLE 5, CHAPTER 5.28 OF THE CARLSBAD
MUNICIPAL CODE BY THE AMENDMENT OF
SECTIONS 5.28.010, 5.28.030, 5.28.040,
5.28.050, 5.28.140 AND 5.28.210 TO
REVISE THE REGULATIONS REGARDING THE
FRANCHISING OF CABLE TELEVISION SYSTEMS
IN THE CITY OF CARLSBAD
The City Council of the City of Carlsbad, California, does
ordain as follows:
SECTION 1: That Title 5, Chapter 5.28, Section 5.28.101 of
the Carlsbad Municipal Code is amended by the amendment of
Subsections (1) and (8) to read as follows:
11 (1) "Cable Television System", "CATV" and "CTV" shall mean
any facility that, in whole or in part, receives directly or
indirectly over the air, and amplifies or otherwise modifies the
signals transmitting programs broadcasted by one or more television
or radio stations and distributes such signals by wire or cable
to subscribing members of the public who pay for such service and
which uses any public street in the city or any other public
property of the city or any privately owned area within the city
which has not yet become a public street but is designated or
delineated as a proposed public street on any subdivision map
approved by the city for said distribution. .
(8) "Gross Annual Revenues" shall mean any and all compen-
sation and other consideration received directly and indirectly
by the Grantee as a result of the construction, maintenance and
operation of a cable television system. Any sales tax, service,
rent, occupational or other excise tax to the extent such taxes
are charged separately to any user of the system and are remitted
by the Grantee to the taxing authority shall not be considered."
SECTION 2: That Title 5, Chapter 5.28, Section 5.28.030
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of the Carlsbad Municipal Code is amended by the amendment of
Subsection (a)(8) to add the following:
"In the event there are two or more systems in the city
and either or both have reached 3,500 subscribers, the Grantee
may petition the City Council and request a modification of
this requirement. The intent and purpose of such request
would be to preclude unnecessarily duplicating studio facilities
in the city. Grantee shall present the City with a plan for a
suitable equivalent to the studio requirement. Suitable
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equivalents to the studio requirement will be determined by the
City Council which shall be a condition of approval of any modifi-
cation pursuant to this subsection."
SECTION 3: That Title 5, Chapter 5.28, Section 5.28.030
of the Carlsbad Municipal Code is amended by the amendment of
Subsection (d) to read as follows:
"(d) The Grantee shall interconnect the system with any
or all other cable systems in San Diego County, or elsewhere,
as follows:
(1) When the system has reached a level of 3,500
subscribers'Grantee shall interconnect said system with all other
systems within the City. Said interconnection shall provide one
channel, one direction, headend to headend communication applying
the technical standards contained in Parts 76 or 78 of the Federal
Communications Commission Cable Television Regulations. Nothing
in this Section shall serve to prohibit Grantee from implementing
the interconnection of the systems above described prior to reaching
a level of 3,500 subscribers;
(2) Interconnection with other systems shall occur when
the Council directs and may be done by direct cable connection,
microwave link, satellite/ or other appropriate method. Inter-
connection may be required for origination and access channels
that are determined by Grantee and City to be technically and
economically feasible;
(3) Upon receiving the directive of city to inter-
connect, the Grantee shall immediately initiate negotiations
with the other affected system or systems in order that costs
may be shared equally for both construction and operation of the
interconnection link;
(4) City may grant reasonable extensions of time to
interconnect or rescind its request to interconnect upon petition
by the Grantee to the Council. The Council shall grant said
request if it finds that the Grantee has renegotiated in good
faith and has failed to obtain approval from the system or
systems of the proposed interconnection, or that the cost of the
interconnection would cause an unreasonable or unacceptable in-
crease in subscriber rates;
(5) The Grantee shall cooperate with an interconnection
corporation, regional interconnection authority or county, state
or federal regulatory agency which may be hereafter established
for the purpose of regulating, facilitating, financing or other-
wise providing for the interconnection of cable systems beyond
the boundaries of the city;
(6) Initial technical requirements to assure future
interconnection capability will be:
(i) All cable systems receiving franchises to
operate within the city shall use the standard frequency
allocations for television signals.
(ii) All cable systems are required to use signal
processors at the headend for each television signal.
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(iii) All local origination equipment is required
to be compatible in order that videocassettes, or videotapes can
be shared by various systems."
SECTION 4: That Title 5, Chapter 5.28, Section 5.28.030
of the Carlsbad Municipal Code is amended by the amendment of
Subsection (f)(7) to read as follows:
"(f)(7) When there have been similar complaints made or
where there exists other evidence, which, in the judgment of the
City Manager casts doubt on the reliability or quality of cable
service, the City Manager shall have the right and authority to
compel the Grantee to test, analyze and report on the performance
of that part of the system involved in the problem. Such test or
tests shall be made at Grantee's expense by an independent third
party selected by the City but in no case shall tests upon the
same part of the system be conducted more frequently than once
every two years. The results of such test or tests shall be
delivered to the City no later than fourteen days after the City
formally notifies the Grantee. Such, results shall include the
following information: the nature of the complaint which pre-
cipitated the special tests; what system component was tested;
the equipment used and procedures employed in said testing; the
results of such tests; and the method in which such complaints
were resolved. Any other information pertinent to the special
test shall be recorded.
The City's right under this provision shall be limit-
ed to requiring tests, analyses, and reports covering specific
subjects and characteristics based on said complaints or other
evidence when and under such circumstances as the City has reason-
able grounds to believe that the complaints or other evidence
require that tests be performed to protect the public against
substandard cable service."
SECTION 5: That Title 5, Chapter 5.28, Section 5.28.040
of the Carlsbad Municipal Code is amended by the amendment of
Subsections (a) and (b) to read as follows:
"(a) In consideration of the granting and exercise of a
franchise to use the streets, as herein defined, for the operation
of a cable television system, any Grantee shall pay to the city,
during the life of the franchise, in the manner, and at times
directed in a Council resolution, a franchise fee ..of three percent
of its gross annual revenues.
(b) The City shall have the right to inspect all records
of Grantee under the franchise and the right to audit and re-
compute any and all amounts payable under this ordinance. The
Gity may require that any reports or financial statements result-
ing from such audit or recomputation be certified by a certified
public accountant. The cost of said audit and certification, if
any, shall be borne by Grantee if it results in an increase of
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more than two percent in the Grantee's annual payment to the
City. City shall bear such costs if the audit results in a
smaller payment to City or if such increase is less than two per-
cent."
SECTION 6: That Title 5, Chapter 5.28, Section 5.28.050
of the Carlsbad Municipal Code is amended by the amendment of
Subsection (j) to read as follows:
"(j) Upon expiration or other termination of a franchise
granted herein, the Council may require that Grantee continue to
operate its cable television system upon the same terms and con-
ditions as contained in the franchise until the effective date of
any new franchise granted which includes the area of the old
franchise. Unless the old Grantee and the new Grantee otherwise
agree, the new Grantee shall purchase the old Grantee's cable,
conduit, amplifiers, auxiliary equipment, headends and transmit-
ting equipme'nt, etc. If the parties cannot agree on a price, then
the matter shall be determined by arbitration as set forth in this
section. In the case of an expiration, the arbitrator shall
determine the fair market value of the system as a going concern
with due consideration given to the then state of the art and any
obsolescence of the assets and equipment concerned. In the case
of a termination for a material breach, the arbitrator shall
determine the value of the system on the basis of its fair market
value with no value assigned to the franchise with due consideratior
given to the then state of the art and any obsolescence of the
assets and equipment concerned.
SECTION 7: That Title 5, Chapter 5.28, Section 5.28.140
of the Carlsbad Municipal Code is amended by the amendment of
Subsection (d) to change the words "10 percent" in the second to
last sentence to read "more than 20 percent".
SECTION 8: That Title 5, Chapter 5.28, of the Carlsbad
Municipal Code is amended by the amendment of Section 5.28.210
to add Subsection (k) to read as'follows:
"(k) Grantee shall submit to City copies of all reports,
correspondence or other communications between Grantee and the
Federal Communications Commission."
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, '•
EFFECTIVE DATE: This ordinance shall be effective thirty
days after its adoption, and the City Clerk shall certify to the
adoption of this ordinance and cause it to be published at least
once in the Carlsbad Journal within fifteen davs after its"
adoption.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the 4th day of October / 1977
and thereafter.
PASSED AND ADOPTED at a regular meeting of said City
Council held on the 18th day of October , 1977 by
following vote, to wit:
AYES: Councilman Frazee, Lewis, Packard and Skotnick
NOES: None
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ABSENT: Councilwoman Casler V J /? > -f
}f^i^Ts^i -/ C* ~7 - , ^,l/\ L< U^^f v_ X i-' sx3e_
ROBERT C. FRAZEE, Mayor-7
ATTEST :
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MARpAEffiT E. ADAMS, fcity Clerk
(SEAL)
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RESOLUTION NO. 5211
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, DECLARING
THAT THE CITY COUNCIL INTENDS, AT A
PUBLIC HEARING, TO CONSIDER GRANTING
CABLE TELEVISION FRANCHISES FOR THE
CONSTRUCTION, OPERATION AND MAINTENANCE
OF CABLE TELEVISION SYSTEMS IN THE CITY
OF CARLSBAD AND TO FIX THE RATES AND
CHARGES THEREFOR.
WHEREAS, in accordance with Chapter 5.28 of the Carlsbad
Municipal Code, the City Council has received applications for non-
exclusive franchises to construct, operate and maintain cable
television systems within the City of Carlsbad; and
WHEREAS, the City Council has determined, after review and
evaluation of said applications, to consider the granting of said
franchises; and
WHEREAS, Section 5.28.080(i)(2) of the Carlsbad Municipal
Code requires that the City Council adopt a Resolution of Intention
to consider the granting of cable television franchises;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad as follows:
1. That the above recitations are true and correct.
2. That the City Council hereby declares that the Council
intends to consider the granting of nonexclusive cable television
franchises to:
a. La Costa Community Antenna System, Incorporated.
b. Daniels Properties, Incorporated.
3. That the terms and conditions of the proposed franchises
are as provided by Chapter 5.28 of the Carlsbad Municipal Code
and as contained in the draft franchise ordinance, marked
Exhibit "A", attached hereto and made a part hereof. Copies of
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this resolution and the proposed franchise ordinances are available
in the office of the City Clerk of the City of Carlsbad.
4. That a public hearing to consider the granting of cable
television franchises, as described in this resolution, shall be
held on October 4, 1977, at 7:00 P.M., or as soon thereafter as
the matter may be heard at the regular meeting of the Carlsbad
City Council in the City Council Chambers, City Hall, 1200 Elm
Avenue, Carlsbad, California. Any individual having any interest
in this matter, or objecting to the granting of said franchises,
may file a written protest or appear before the City Council and
be heard at said public hearing.
5, That at said hearing the City Council also intends to
consider the adoption' of resolutions establishing and fixing all
rates and charges for basic cable television services as follows:
a. Basic service: maximum of $7.50/month, plus $1.00
converter rental.
b. Additional outlet: maximum of $1.75/month, plus
$1.00 converter rental.
c. FM service: maximum $1.75/month.
d. Installation fee: maximum of $15.00 for primary
outlet and $6.00 for additional outlets, which may
be waived by operator.
e. Reconnection or relocation: $10.00.
f. Converter deposit: maximum of $20.00, which nay be
waived by operator.
g. Bulk rate (minimum of 5 units): maximum 80% of
individual rates when all units are connected and a
single billing is made.
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h.
i.
6. The
resolution at
newspaper of
PASSED,
Carlsbad City
Hotels and Motels: maximum. of 60% of individual
service rates when all units are connected and a
single billing is made.
Transfer of service: $8.00.
City Clerk is hereby directed to publish this
least once within ten days of its passage in a
general circulation in the City of Carlsbad.
an adjourned
APPROVED AND ADOPTED at / regular meeting of the
Council held on the 22nd day of September > 1977
by the following vote, to wit:
AYES :
' NOES :
ABSENT :
ATTEST :
S*D s/(/ I &£ 4 &<tt£'
Councilnien Frazee, Lewis, Packard, Skotnicki and
Council woman Casler
None
None \/0
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RDBERT C. FRAZEE, Ma^Or
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¥ /^^Y;
MARGARET E. AD'AMS , City Clerkr v
(SEAL)
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EXHIBIT "A" TO RESOLUTION NO; JT^J, jj_
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, GRANTING
A FRANCHISE FOR A CABLE TELEVISION SYSTEM
TO DANIELS PROPERTIES, INC. AND LA COSTA
COMMUNITY ANTENNA SYSTEM, INC. _
The City- Council of the City of Carlsbad, California does
ordain as follows:
SECTION 1: This ordinance is enacted pursuant to the
authority provided in, and all the provisions, terms and conditions
of Ordinance No. 6055, "Establishing a Procedure for the Granting
of Franchises for Cable Television Systems in the City of
Carlsbad", adopted on February 5, 1976, and codified as Chapter
5,28 of the Carlsbad Municipal Code.
SECTION 2: Pursuant to the provisions of said Chapter 5.28
(Ordinance No. 6055) f franchises to construct, operate and maintair
cable television systems within tha areas specifically described
and delineated below are hereby granted to (1) Daniels Properties,
Inc. and (2) La Costa Community Antenna Systems, Inc., herein
referred to as GRANTEES, with all the rights and privileges
and subject to each and all of the terms and conditions of said
Chapter 5.28 (Ordinance No. 6055, as amended by Ordinance
NO.
Daniels Properties, Inc. shall serve all land within the
corporate limits of the City of Carlsbad as they may be during
the term of the franchise except those areas to be served by
La Costa Community Antenna System, Inc. , which shall serve the
following generally described areas:
1. That portion of the city known as "La Costa", which
annexed to the City of Carlsbad effective December 6,1972
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in accordance with the agreement between the City and
La Costa Community Antenna System, Inc., dated July 25,
1972.
2.. The "Ponderosa Development", lying to the south of
and contiguous to the "La Costa" annexation described
above.
3. The "Northeast Annexation",'lying northeast of and
contiguous to the "La Costa" annexation described above.
4. The "Weigand and Others Development", lying south and
contiguous to the "La Costa" annexation described above.
5. "-La Costa'North'-',. lying north of and contiguous to the
"La Costa" annexation described above,
6. The "Ponderosa North Development", lying north of and
contiguous to the "La Costa" annexation described above.
The areas to be served by La Costa Community Antenna System,
Inc., as described in Subsections 1 through 6 above, are more
particularly described and delineated on the map marked Exhibit
"A", attached hereto and made a part hereof.
It is understood that those areas known as the "Seaport
Development" and the "Spinnaker Hills Development" may be
temporarily served by La Costa Community Antenna System, Inc.
pursuant to an agreement with Daniels Properties, Inc. Such
agreement shall contain the terras of such temporary service and the
per _unit acquisition costs which will prevaJ 1 at the time of transfei
of service to Daniels Properties, Inc. Further, a copy of any
such agreement must be filed with the City Clerk and shall not be
effective until approved by the City Council.
SECTION 3: Grantees shall provide service to all of their
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respective service areas within four years of the effective date
of this franchise. Grantees shall provide service to a minimum
of twenty-five percent of their respective service areas within
one year of the effective date of this franchise and shall extend
service to an additional twenty-five percent of their respective
services during each of the following three years.
Grantees shall be deemed to have provided service in satis-
faction of the requirements of this section if they have reached
(1) all dwelling units where density is equal to or greater than
forty dwelling units per mile of cable plant and where said units
are within one fourth mile of a trunk cable, or (2) all dwelling
units where density is equal to or greater than twenty dwelling
units per mile of cable., where said dwelling units are within one
fourth mile of a trunk cable and where there is an agreement for
twenty or more subscriptions to the service.
After four years from the effective date of this franchise,
Grantees shall extend service to any area meeting requirements
(1) or (2) above within ^ix months of the date said area met
the requirements.
Grantees shall extend service to any area or dwelling unit
not otherwise required .to be "served by this section where said
area or dwelling unit agrees to pay the actual material and direct
labor costs (not including overhead) required to extend the cable
facilities necessary to provide such service.
SECTION 4: Pursuant to the provisions of Chapter 5.28,
Section 5.28.170 of the Carlsbad Municipal Code, the Grantees
shall charge their subscribers and users the rates and charges
as approved by the City Council in its Resolution No.
and Resolution No. and no increase therein may be made
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without prior approval of the City Council -expressed by resolution
adopted pursuant to said section.
SECTION 5: The Granteees shall transmit" over the system the
following channels subject to Federal Communication Commission
approval: Channel 6, XETV; Channel 8, KFMB; Channel 10, KOGO;
Channel 15, KPBS; Channel 39, KCST; Channel 2, KNXT;Channel 7, KABC;
Channel 9, KHJ; Channel 22, KWHY and Channel 52, KBSC; Channel 4>
KNBC; Channel 5, KTLA, Channel 11, KTTV; Channel 13, KCOP; Channel
28, KCET; Channel 58, KLCS and Channel 50, KOCE.
SECTION 6: Grantees shall provide for transmission by cable a
minimum of fifteen frequency modulated radio signals received off
the air.
SECTION 7: Grantees shall provide channel carriage for
Instructional Television Fixed Service on frequencies specified'
for such carriage by the Federal Communications Commission. Such
channel carriage to be limited to point to point transmissions all
additional- equipment or plant facilities necessary for origination
from and distribution within educational facilities will be
provided by the school district receiving the service.
SECTION 8: The cable television system herein franchised
shall be used and operated solely and exclusively for the purpose
expressly authorized by ordinance-of the City of Carlsbad and no
other purpose whatsoever.
SECTION 9: All .provisions of Chapter 5.28 of the Carlsbad
Municipal Code (Ordinance No. 6055, as amended by Ordinance
No. b?Q*j'/7 ) are expressly made a part of this franchise.
SECTION 10: This ordinance shall become effective thirty
days from and after its passage; provided, however, that the
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franchises hereby granted shall not become effective unless and
until Grantees file written acceptance thereof and an agreement
to be bound by and comply with all of the requirements thereof,
and delivers to the City the bond and insurance policies required
to be furnished, all pursuant to the provision of Sections
5.28.090, 5.28.100, 5.28.120 and 5.28.130 of Chapter 5.28
(Ordinance No. 6055).
'EFFECTIVE DATE: This ordinance shall be effective thirty
days after its adoption, and the City Clerk shall certify to the
adoption of this ordinance and cause it to be published at least
once in the Carlsbad Journal within fifteen days after its
adoption.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the day of , 1977
and thereafter. ...
PASSED AND ADOPTED at a- regular meeting of said City
Council held on the day of _, 1977 by the
following vote, to wit:
AYES:
NOES: .
ABSENT:
ROBERT C. FRAZEE, Mayor
ATTEST :
MARGARET E. ADAMS, City Clerk
(SEAL)
5.
- La Cps'ta Community
. Antenna System Service
'•area;
2." Seaport Development
temporarily served by
• La Costa .Community_
.Antenna System by agree
ment with Daniel's
Properties; Inc.
3. Spinnaker Hills Deve
opment temporarily
served by La Costa
Community Antenna
System by agreement wit-
Daniel's Properties,Inc
4. Balance of City
served by Daniel-1 s
Properties?, Inc.
..EXHIBIT TO ORDINANCE