HomeMy WebLinkAboutDocumentation_Regular_Tab 4A3_2/5/1998 51 fr.
Memorandum
To: Village Council
From: Thomas G. Bradford, Village Manager
Date: January 28, 1998
Subject: Public Hearing to Consider Adelphia Franchise Renewal
Request; Agenda Item
By . letter received by the Village of Tequesta on November 15,
1996, Adelphia Cable formally requested the initiation of a
franchise renewal with the Village of Tequesta on an informal
basis . The applicable law relative to franchise renewal is the
Cable Communications Policy Act of 1984 ( 1984 Cable Act) .
Specifically, Section 626 of the 1984 Cable Act sets forth the
requirements for franchise renewal . Section 626 states in
pertinent part that during the six-month period within the 36th
month before the franchise expiration; the franchising authority
may, on its own initiative, and shall, at the request of the
cable operator, commence proceedings which afford the public in
the franchise area appropriate notice and participation for the
purpose of:
1 . Identify the future cable-related community needs and
interests; and
2 . Reviewing the performance of the cable operator under the
franchise during the then current franchise term.
Additional procedures are required by the 1984 Cable Act, but it
is the .procedure for allowing public input which captured the
attention of the Village Council when the franchise renewal
process was initiated.
The 1984 Cable Act allows for franchise renewal on an informal
basis . It has been the preference of Adelphia and the Village of
Tequesta to pursue such franchise renewal on an informal basis .
However, the Village Council, while agreeing with Adelphia to
pursue the informal renewal process and directing the Village
Manager to pursue the same on behalf of the Village, expressed a
desire to continue to plan to conduct the proceeding contemplated
under the formal procedures of the 1984 Cable Act, to allow the
Tequesta residents to speak to those pertinent issues referenced.
Accordingly, it is for this purpose that the Public Hearing
proceeding scheduled for February 5, 1998, has been scheduled
pursuant to informal procedures, yet allowing the public to still
have input on the important issues of needs, interests,
performance, and the proposed new Franchise Agreement.
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The items that the Village Council has previously identified
under the heading of "Future Cable-Related Community Needs and
Interests" are as follows :
• Gratis right-of-way permit application compliance
• Universal service, particularly for commercial areas
currently not served
• Due to the rapid changes in the telecommunications
industry, a franchise agreement of a shorter term with a
three-ten year duratibn
• Provision of a five-year capital improvement program
indicating all renewal and replacement projects of the
cable operator, to be updated on an annual basis
• Maximum competitive programming for customer
satisfaction and franchise revenue enhancement
• Free CATV and Internet service for each municipally
owned public building
During the course of these negotiations, the Village Council
requested that a CATV survey comparing Adelphia Cable to other
cable services be conducted. The CATV survey conducted by
Village staff compared programming services, premium services,
equipment, additional services, installation services, and
transaction charges . The results of the survey presented to the
Village Council at their Meeting in April of 1997 revealed that
Adelphia Cable is a competitive CATV service provider. Their
programming is comparable and their pricing is basically in-line
with the remainder of the industry compared. Municipal
regulation of CATV rates has been preempted by Federal
legislation.
In terms of their performance, service response is key. In all
my time with the Village, I have never received a single
complaint concerning service received from Adelphia.
Additionally, it should be noted that Adelphia provides the
Village with a written report of each service outage, location of
service outage, cause of outage, duration of outage, and remedy
for same.
I have completed my negotiations with Adelphia relative to a new
Franchise Agreement. In this regard, attached hereto, please
find a copy of the same for your review.
The highlights of the Agreement are as follows :
• The Franchise term is for seven (7 ) years with Adelphia
having a three (3) year renewal option upon substantial
compliance with 'the material provisions of this
Franchise.
• Adelphia is required to upgrade the system to a capacity
of 750 mhz within five (5) years of the effective date
of the franchise.
• Channel capacity shall be maintained at not less than
fifty channels at all times .
• The Village is provided with an access channel, if
needed, subject to limitations .
• Council Meetings can be cablecast on a tape-delayed
basis and, at the request of the Village, ' upon the
completion of Adelphia' s referenced system upgrade,,
Adelphia shall cablecast Village Council live, if the
Village so requests .
• Payment of a franchise fee of 5% of the company' s gross
revenues to be paid to the Village on a quarterly basis .
Currently, Tequesta ' s franchise fee is 6% and paid on an
annual basis . The 1996 Telecommunications Act limits
franchise fees to 5% . Accordingly, Tequesta must comply
with the same.
• Adelphia will provide free-of-charge cable service and
Internet subscription service to each facility owned,
operated, or leased by the Village. This is very
beneficial to the operations of the Village particularly
regarding the newly provided Internet service.
• Payment of a transfer fee of $1, 500 to Tequesta in the
event Adelphia Cable is sold or transferred to another.
This is to cover Tequesta' s expenses in acting upon the
request for such sale or transfer.
• Other Agreement provisions ranging from definitions to
revocation procedures .
It is recommended that the Village Council conduct this Public
Hearing proceeding in accordance with the Agenda which is
designed to -facilitate maximum understanding of this issue and
public participation relative to the same.
Should you have any questions relative to this matter, please
feel free to seek clarification from me at any time before or
during the proceeding.
TGB/krb
council\012698.sam
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