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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. 2 3 4 5 6 7 8 9 10 11 12o § § 13 ^5 s 8" fe 3 ! 14 B b 5 j -° lij OH '" ,-. .. *1 fi2 ^ o D 16 O t - m ^ i 17 i ° is 19 20 21 22 23 24 25 26 27 28 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 r 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 COJ I tn < en "* ° < O""- D 5°° ii o> >§5 t < it LL° ? <m O z£ 8 Q Bi-SZ O CO > t- tz ^ -o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 2. C° -, "] O;? ° m CO CE Ot- 0 1 2 3 4 5 6 7 8 9 10 11 12 13 o-^sl 14S° i io >• > o= S*S 15u; • 3 < V ^z S 8 Q 16 17 18 19 20 21 22 23 24 25 26 27 28 (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 3. mw S _i<o o tc — ajZ O to O 1 2 3 4 5 6 7 8 9 10 11 12 13 o-^sl 14 §?S|igss 15 . 5 80 16 17 18 19 20 21 22 23 24 25 26 27 28 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." • 0 CO g £C CM< O) O rfLJj „ > I 0t < tO 5 — J ' Cu 0 £ 8 Q*!. CN rf g - OD h- OC > 31-o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , '• 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 j^"*\ 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 : * ^^^~)S~) / \g> /^/y /ff /SLsV*^ JL^S^fo' &• ( ^/yrl ^f-^ts*f^4t J MARpAEffiT E. ADAMS, fcity Clerk (SEAL) - r " 5. the i o COto_l ~> 0 O u-0 0 U.' ' g 10 £ > H ^O COo8 ELM AVENUECALIFORNIA E8 D2 <COto o: o 1 2 5 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Q m 1° < ol - Z £ 8 0UJ Z ON < IP'S> 1- CC 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 2. Q CO «0£ 8rf *£ W S^ < °> tfu. £ 5*-» /-I -J Z2 ° 2 Q;>- *" o§•"<"-Q 0 3 J u." . _i < z|idUI Z CM <fo o: ~ S1? 53>5 3>- ° O 1 2 •a 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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: $8.00. City Clerk is hereby directed to publish this least once within ten days of its passage in a general circulation in the City of Carlsbad. an adjourned APPROVED AND ADOPTED at / regular meeting of the Council held on the 22nd day of September > 1977 by the following vote, to wit: AYES : ' NOES : ABSENT : ATTEST : S*D s/(/ I &£ 4 &<tt£' Councilnien Frazee, Lewis, Packard, Skotnicki and Council woman Casler None None \/0 A ^^^ * ^^ A *f~f*1' f /)\, &V^/l C C$s1&*&Q^ RDBERT C. FRAZEE, Ma^Or . ¥ /^^Y; MARGARET E. AD'AMS , City Clerkr v (SEAL) 3. 1 2 3 4 5 6 7 8 9 10 11 12o 1 § 13_; 0- CM"~ < en o-"S| 14 3° i§o> > §2 H $ u. -1C03 o ^ 13 -5-"1 • 5<.. UJ Os S P 16 17 18 19 20 21 22 23 24 25 26 27 28 _.-" <O tt •- (rf 2O 10 > I- cc ^ o 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 1 2 § § c < O) ~* O _, o""- Si5° igo> > o i£<=i- • §5 10 11 12 13 14 15 UJ *-* 8 D 16 IE u to_i cc 17 18 19 20 21 22 23 24 25 26 27 28 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 2. 10 11 12o 1 8 13 d"S| 14 -°5§o s~ •*> \J ig|S 15«••>:! 5 z £ 8 d 16Uj *— cv ^ O ^ *~ COSg 3> t- tr 17 O H O 18 19 20 21 22 23 24 25 26 27 28 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 3. 1 2 3 4 5 6 7 8 9 10 11 o 12 § ° 13 d"sl 14 g?l|i£«§ is - • §S £»-Bd 16 ^ 17 5 18 19 20 21 22 23 24 25 26 27 28 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 4. o in COi 8K < g |o|l 55 » D z £ 8 Qal Z CM <£ Z O co >£ 5 B 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 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