HomeMy WebLinkAbout1993-100 Extension Agreement •
• ORDINANCE NO. 93- 100
AN ORDINANCE extending the current cable television franchise agreement
through January 31, 1994
WHEREAS, the Cable Communications Policy Act of 1984 (the "1984 Act ") and
the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable
Act ") outline procedures for renewing cable television franchise agreements; and
WHEREAS, the City of Yakima previously has granted to TCI Cablevision of
Washington, Inc. ( "TCI ") a franchise to provide cable television services within the
City boundaries, and
WHEREAS, the City of Yakima has followed renewal procedures in accordance
with the 1984 and 1992 Cable Acts and has conducted a public review of TCI's
performance, which resulted in favorable comments on the quality of that
performance; and
WHEREAS, the City of Yakima and TCI have negotiated in good faith toward a
• new franchise agreement, which is expected to result in a renewal agreement being
presented to City Council no later than 12/31/93, to take effect 1/31/94, and
WHEREAS, it is the intent of the 1984 and 1992 Cable Acts that a cable operator
not be unfairly denied authority to continue its operations; and
WHEREAS, the City Council hereby finds that it is in the public interest that the
terms of the current franchise continue until a renewal is enacted, and
WHEREAS, the current franchise agreement will expire November 7, 1993, and
WHEREAS, this ordinance provides for the immediate preservation of the
public peace, health, and safety of the people of the City of Yakima, and an
emergency is hereby declared to exist, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1 The terms of the current franchise agreement with TCI Cablevision
of Washington, Inc as approved by Ordinance No. 2209 and as amended by Resolution
No D-5346 are hereby continued in effect from November 7, 1993 through January
31, 1994, contingent on the signature of an authorized representative of the cable
operator, below, showing the cable operator's agreement to continue according to the
above - referenced terms.
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Page 1
(lalord /TCI sc
S
• PASSED BY THE'CITY COUNCIL, signed and approved this 9th day of November ,
1993
ATTEST Mayor
K a ,.d
City Clerk
Publication Date: Friday, November 12, 1993
Effective Date: December 12, 1993
ACCEPTANCE OF THE TERMS OF THE FRANCHISE AGREEMENT r
AS EXTENDED ABOVE:
TCI CABLEVISION OF WASHINGTON, INC.
By
Its:
Date.
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Page 2
18)ord /TCI 8C
• Memorandum
TO Honorable Members of Council
Richard Zais, City Manager
FROM. Wendy Warren, Cable Communications Manager , i 1
DATE November 5, 1993. �/"
RE Ordinance to Extend Current Cable Franchise Agreement
Background
The City of Yakima has been engaged in the process of cable television
franchise renewal for the past three years, initiated by a request from the
current cable operator, TCI of Yakima Valley, and pursued in accordance with
provisions of the Cable Communications Policy Act of 1984. This process has
afforded the city opportunity to review the past performance of the cable
operator, assess future community needs and interests in cable TV service,
and negotiate a comprehensive franchise agreement which addresses those
future needs.
The 1984 Cable Act outlines a formal renewal procedure while encouraging
simultaneous informal discussion. The City has utilized both avenues,
• incorporating the assistance of the Community Programming Advisory
Committee (CPAC) and the Council's own committee on cable television.
The process has continually moved forward toward a mutually beneficial
conclusion, however, the volatility of the technologies, federal legislation and
national business environment affecting the cable television industry have
slowed our progress.
Congress, addressing a series of dissatisfactions with the cable TV industry
following de- regulation of cable in 1984, passed the Cable Television
Competition and Consumer Protection Act of 1992. The new Act gives back
some rate regulatory powers to local governments, establishes minimum
consumer protection guidelines, authorizes broadcasters to negotiate with
cable operators for retransmission considerations, and provides for equal
access to programming services.
Each of these aspects of the Act have required staff time for education and
implementation in order to best utilize the tools given to us for local
regulation. In addition, cable companies have also needed to invest staff time
in understanding and complying with the new regulations.
Technological advances have been accelerating for some time, but within the
past two years, significant changes in how video, voice, and data are
transmitted and combined are evolving into the "information infrastructure"
1111 in which cable is a major player
• At the same time, cooperative agreements between cable operators and
telephone companies have developed into full -blown mergers which impact
the growth of the industry, the speed of the technological developments, and
the way we regulate the information "superhighway " TCI and Bell Atlantic's
just- announced merger creates the largest telecommunications corporation in
the world, a business decision which will eventually affect Yakima.
In the long -run these developments will be to the city's advantage, however,
they have slowed negotiations. Gary Bailey, general manager of TCI of
Yakima Valley, has requested a short -term extension of the current franchise..
(See Attachment A.) While the proposed new franchise is very near a final
form, there are a few areas of disagreement requiring resolution. A
temporary extension is both necessary and desirable in order to bring a
comprehensive document to the public and council for consideration.
Status of the Renewal Process.
The draft franchise sent to TCI in July as a working document was created
through the efforts of the CPAC, the Council cable TV committee and city
staff We conducted a community survey, held public meetings, researched
newer franchises in similar -sized cities, and consulted with technical and
legal professionals in this specialized area of communications in order to
• develop a document which best reflects the current and anticipated cable
television environment The document underwent four comprehensive
revisions before going to TCI.
Because of retransmission negotiations in all of its franchise jurisdictions, TCI
was not able to respond as quickly to our proposal as hoped. However, last
week, Mr Bailey, Glenn Valenzuela and myself sat down to discuss TCI's
response to the draft document.
In four hours of conversation, it became apparent that there is significant
agreement on the document with two outstanding points to negotiate the
extent and construction of an institutional network as part of the overall cable
system, and the level of capital support for cable access television. On neither
of these points are the City and TCI distant from resolution.
The latest revisions to the document -- some of which incorporate changes
mandated by the 1992 Cable Act and newly published FCC regulations -- are
being made and copies of the this fifth draft will be forwarded to the CPAC
and the Council's cable TV committee early next week.
•
• Summary
An extension of the current franchise through January 31, 1994, will afford
these two committees adequate time to study and discuss the document and
provide opportunity for public comment before a recommendation on the
renewal is made to the full Council, as well as time for a new franchise
ordiancne to be adopted and the 30 days needed for that ordinance to take
effect.
Within the extension period, the following timeline is proposed.
November 9 Council meeting to extend current- franchise
Nov 10 - 28 Revisions to franchise document discussed by the CPAC
and the Council's cable TV committee. Final negotiations
with TCI to work out remaining areas of difference.
Nov 29 Revised franchise document available for public review
Dec. 1 CPAC meeting for public comment on franchise.
Dec. 7 Council meeting for public comment on franchise.
• Dec. 14 Council decision on franchise renewal.
An ordinance authorizing the extension of the current franchise is included
herewith as Attachment B
111/
1
ecC(
• y r ; TCI Cables ision of '
��.�,,s=, \ ashtnatcn, Inc
October 22, 1993
Wendy Warren
Cable Comm_ni cations ianac_r
1103 S 24th A e. ____
Yakima, WA 93902
Dear wend.
Tis letter is to corfirm _u_ con Tersat =_ _ and e et_ _ -- _
regarding continL.ed franc renewal d_ =oussic s for _ e .-ae
franchise wi tni n the C.t y of YaKima.
I feel that c..._ discus3io - s dent very well and an:Lie N ..._a _,o
agree on ever_ issue .de_ ce_ =ain_y ade ochsideraole t e == :t
is my understanding t_'at _ net step i7 tne trocess _s : ;CL..
4 10
w_11 take the "Dra =t" ord__ancebacz to cur legal s :aff, ^ _ Y a d
your super "' '- with_ ` e tggesVtea c1 a" _ es we oiscu r
e
prepare another ":raft" ordinance incortoratirg tri°_ -a
Ater the new draft _s co Clete you and : •wi_1 - eeo - _ to
hopefully conclude our negotiations.
Lastly, as we also discussed, since the existinc franchise -rill
expire November 7 there i3 no way that we can conclude t - e
franchise renewal process by then, therefore it is imberati'r_ that
we extend the existing franchise to at !east t:e end of _ year
and possibly to the end of January 1994.
Please bring this issue before the City Council for approyai as
soon as possible.
Again I think our meeting .vent very well and I look forward to an
expeditious conclusion of our negotiations.
Sincerely,
^ C L -e i
J
1
Gary A. Bailey
0 cc: Dan McCarty
Hank Sexton
Glenn Valenzuela
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No l''f
For Meeting Of Nov. 9. 1993
ITEM TITLE: Short -term Extension of Current Cable Franchise Ordinance agreement with
TCI of Yakima Valley, Inc.
SUBMITTED BY Glenn J Valenzuela, Director of Community & Economic Bi-• en
CONTACT PERSON/TELEPHONE. Wendy Warren, Gable Communicati• . ger/
575 -6092
SUMMARY EXPLANATION:
The City has been engaged in the procedures and negotiations surrounding renewal
of the cable television franchise for the past three years While negotiations have progressed
rapidly and relatively smoothly, final details cannot be completed prior to the expiration of the
current cable television franchise
In order to finalize the negotiations, prepare the new franchise ordinance for public
comment and Council consideration, and provide for the required 30 days between the
ordinance's adoption date and effective date, an extension through January 31, 1994, is
requested
Assistant City Attorney Sharon Carberry has provided the attached ordinance for
Council consideration
Resolution _ Ordinance X Contract _ Other (Specify)
Funding Source
APPROVAL FOR SUBMITTAL A 3 .421-ek%
City Manager
STAFF RECOMMENDATION Staff recommends adoption of ordinance
BOARD RECOMMENDATION
COUNCIL ACTION Ordinance No. 93 - 100
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