Loading...
HomeMy WebLinkAboutReso 2008-128 RESOLUTION NO. 2008-128 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSENTING TO THE ASSIGNMENT OF CHULA VISTA CABLE, LTD., FRANCHISE AGREEMENT TO NEXHORIZON BROADBAND OF SOUTHERN CALIFORNIA, INC. WHEREAS, subject to City Council approval, Chula Vista Cable Ltd. (Chula Vista Cable) has transferred ownership of its cable operations and infrastructure within the City of Chula Vista to NexHorizon Broadband of Southern California Inc., (NexHorizon); and WHEREAS, the City of Chula Vista entered into a Cable Franchise Agreement with Ultronics, Inc., on November I, 1987; and WHEREAS, on July 21,1987 the City Council passed a resolution notifying the public of the Council's intention to hold a public hearing on August 18, 1987 to consider the granting of a cable franchise agreement to Ultronics Inc; and WHEREAS, the City approved a request by Ultronics to transfer the Agreement from Ultronics to a Chula Vista Cable, on May 12, 1989, and that Agreement remains in force today; and WHEREAS, Section 6.c. of the Franchise Agreement allows the Grantee to assign the Franchise, subject to City Council consent; and WHEREAS, at the request of Chula Vista Cable, the City began negotiations to extend the Franchise with Chula Vista Cable in 2004; and WHEREAS, at Council direction staff concluded those negotiations in late 2004, which included a Franchise extension for an additional ten years through November 30, 2020; and WHEREAS, due to the death of the founder of the company, and the subsequent re- organization of the company, Chula Vista Cable did not approach the City to formally process the Agreement until June of2007; and WHEREAS, at that time, Chula Vista Cable and NexHorizon approached the City about assigning the Chula Vista Cable Franchise Agreement to NexHorizon; and WHEREAS, staff has contacted communities served by NexHorizon to verify their capacity to provide quality service and checked with the FCC to review any potential complaints; and Resolution No. 2008-128 Page 2 WHEREAS, the record is generally good with some complaints however, the markets they currently operate in are very small and individual service issues are proportionally far more significant; and WHEREAS, NexHorizon's commitment to updating the Chula Vista Cable infrastructure, the quality of their products and service in Chula Vista is strong; and WHEREAS, NexHorizon has emphasized their commitment to customer service and understands that Staff will enforce consumer protections in the NexHorizon Agreement that are equivalent to or better than industry, state and federal standards; and WHEREAS, NexHorizon has also demonstrated the financial capacity to upgrade operations and customer service during the transition period and provide additional capital that will improve the range and quality of services provided to their Chula Vista customers; and WHEREAS, in connection with seeking the City Council's consent to the assignment, NexHorizon has satisfied the requirements of Section 6.c. of the Franchise Agreement; and WHEREAS, specifically, NexHorizon has demonstrated to City staff its financial responsibility and ability to assume the franchise, and has agreed to comply with the terms ofthe Franchise Agreement; and WHEREAS, the assignment of the Franchise Agreement leaves the business terms of the Agreement intact, including the Franchise Fee payment. which is based on 5% of the cable services gross receipts. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby consent to the assigrunent of Chula Vista Cable, Ltd., Franchise Agreement to NexHorizon Broadband of Southern California, Inc. Presented by Approved as to form by ~~ ~Michael Meacham Conservation and Environmental Services Director ~"<N\~~~, Ann Moore City Attorney Resolution No. 2008-] 28 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 20th day of May 2008 by the following vote: AYES: Councilmembers: Castaneda, McCarm, Ramirez, and Cox NA YS: Councilmembers: None ABSENT: Councilmembers: None ABST A]N: Councilmembers: Rindone ~~. Cheryl C', yor ATTEST: LIJ1t~ Donna R. Norris, CMC, Interim City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certifY that the foregoing Resolution No. 2008-]28 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 20th day of May 2008. Executed this 20th day of May 2008.