HomeMy WebLinkAboutReso 2009-274RESOLUTION NO. 2009-274
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DIRECTING STAFF TO COMMENCE
TERMINATION OF THE NEXHORIZON FRANCHISE
WHEREAS, NexHorizon has failed to meet certain material provisions of the Franchise
Agreement, and after reasonable attempts to cure such provisions staff has executed the notice
required to consider possible termination of the Franchise Agreement; and
WHEREAS, on or about August 18, 2009, staff provided NexHorizon with a detailed list
of the material provisions within the franchise agreement that NexHorizon has failed to comply;
and
WHEREAS, staff has worked diligently with NexHorizon and has provided it with every
reasonable opportunity to satisfy its obligations under the franchise agreement prior to the public
hearing; and
WHEREAS, NexHorizon has not cured its failure to comply with certain material
provisions of the franchise agreement; and
WHEREAS, the City has not received Franchise Fee and Utility User's Tax payments for
the current fiscal year and the total payments are estimated to be approximately $60,000; and
WHEREAS, additionally, staff has invested resources in the development and bid
implementation process for two (2) 20a utility under grounding projects; and
WHEREAS, these costs for these projects aze recoverable through an allocation pursuant
to the Public Utilities Commission and funded by local ratepayers; and
WHEREAS, the projects represent a value to the citizens of Chula Vista and to the extent
the projects aze not completed, costs increase or are duplicated by failure of the franchise to meet
the obligations in a timely fashion, the City would either absorb those costs or the project would
not be completed and the community would not receive the benefit of their investment; and
WHEREAS, the City has complied with Section 3.c. of the Franchise Agreement,
regarding termination of the agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that City staff is directed to commence termination of the Franchise Agreement between the City
of Chula Vista and NexHorizon Communications Inc. for failure to comply with material
provisions of the Franchise Agreement.
Resolution No. 2009-274
Page 2
Presented by
Approved as to form by
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Michael T. Meacham Bart C. Mie~afeld //
Director of Conservation and Cit Atto e
Environmental Services
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 17th day of November 2009 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and
Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
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Cheryl Cox, M or
ATTEST:
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Donna R. Norris, C ,City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-274 was duly passed, approved, and adopted by the City Council at a
regulaz meeting of the Chula Vista City Council held on the 17th day of November 2009.
Executed this 17th day of November 2009.
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Donna R. Noms, CMC, City Clerk