HomeMy WebLinkAboutReso 1993-16967 RESOLUTION NO. 16967
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA DECLARING THAT THE DISSOLUTION OF
CHULA VISTA CABLE WOULD NOT BE IN THE BEST INTEREST OF
THE CABLE SUBSCRIBERS OF THE CITY OF CHULA VISTA
WHEREAS, in December 18, 1984, the City of Chula Vista has franchised Cox
Cable of San Diego, Inc. ("Cox") to provide cable television service to its
residents, and since then, Cox has been ~roviding cable television service to
almost all of the territory of the City Cox Service Area"); and,
WHEREAS, in September, 1987, the City has franchised Ultronics Cable, Inc.
to provide cable television service to its residents for a period of three years;
and on June 13, 1989, said franchise was transferred to Chula Vista Cable
("CVC"). Since then, CVC has been providing cable television service to a
limited territory of the City ("CVC Service Area"); and,
WHEREAS, Jones Intercable, Inc., ("Jones") a third cable provider, has
installed cable infrastructure in the south San Diego County area (including
Rancho San Diego and conduit in recented annexed areas of the City of Chula
Vista, such as EastLake) in an effort to offer competing cable service, but they
have reserved their intents in this regard, and now propose leave the market
area; and,
WHEREAS, Jones has proposed to sell part of their infrastructure to Cox as
they depart from the market area; and,
WHEREAS, the CVC Service Area overlaps and occupies only a small portion
of the Cox Service Area; and,
WHEREAS, in the CVC Service Area there is competition for cable television
subscribers, and in such area, Cox has lowered its charge for cable services to
all subscribers to equal the prices charged by CVC; and,
WHEREAS, the example in the CVC Service Area, Cox and CVC charge
approximately $17 per month for basic service, and outside the CVC Service Area,
but in other parts of the Cox Service Area, Cox charges approximately $21 per
month for basic service; and,
WHEREAS, there are approximately 14,000 cable subsribers inthe CVC Service
Area, approximately 4,000 of which subscribe to CVC, and approximately 10,000 of
which subscribe to Cox, all of which are benefiting from the existence of this
competitive market; and,
WHEREAS, the elimination of CVC would eliminate said competition and most
likely result in raising the cost of basic and higher tier services for about
14,000 subscribers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY
FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS:
Resolution No. 16967
Page 2
1. Jones has been removed as a competitor from the cable television market.
2. There are now only two competing cable companies in Chula Vista---Cox and
CVC.
3. The dissolution of CVC, or its sale to Cox will not serve the best
interests of the residents and cable subscribers of the City because it
will increase the cost of cable television services in the CVC Service
Area affecting approximately 14,000 current subscribers, and such
additional subscribers as may come into the CVC Service Area as said Area
expands.
4. The City Council of the City of Chula Vista hereby expresses its
preference that the dissolution of Chula Vista Cable, and any parent
corporation, should not occur because of the detrimental effects to the
resident cable subscribers of the City of Chula Vista, and thereby to
itself.
5. This resolution shall take and be in full force and effect immediately
upon the passage and adoption hereof.
6. The City Clerk shall certify to the passage and adoption of this
Resolution; shall enter the same in the book of original Resolutions of
said City; and shall make a minute of the passage and adoption hereof in
the minutes of the meeting at which the same is passed and adopted.
Bruce M. Boogaard
City Attorney
Resolution No. 16967
Page 3
PASSED, APPROVED and ADOPTED by the City Council of the City of Chula
Vista, California, this lgth day of January, lg93, by the following vote:
YES: Councilmembers: Fox, Horton, Moore, Rindone
NOES: Councilmembers: None
ABSENT: Councilmembers: Nader
ABSTAIN: Councilmembers: None
/MJ~aFT R. Rindone
M Pro-Tempore
ATTEST:
Beverly 7A.I Xuthelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 16967 was duly passed, approved,
and adopted by the City Council held on the 19th day of January, 1993.
Executed this 19th day of January, 1993.
· Authelet, City Clerk