HomeMy WebLinkAboutAgenda Statement 1987/09/15 Item 14COUNCIL AGENDA STATEMENT
Item I4
Meeting Date 9/15/87
TITLE: Public Hearing - Proposed Cable Franchise for Ultronics, Inc.
Ordinance~~=~=3 a -Granting a Franchise to Ultronics, Inc.
SECOND READING AND ADOPTION
SUBMITTED BY: Assistant City Manager ~~ (4/5ths Vote: Yes No X )
REVIEWED BY: City Manager Q ~ ~~_,
On August 18, 1987, the City Council set the matter of a proposed cable
t.v. franchise for public hearing on September 8, 1987. A previous hearing
was held on August 18, 1987, but a new hearing for tonight's meeting
was needed inasmuch as changes were made in the first franchise agreement.
RECOMMENDATION: Hold public hearing and give ordinance first reading.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
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The City Charter prescribes strict rules governing the granting of franchises
within the City. Charter provisions require that the hearing be held
on the specific language of a proposed franchise. If, during the hearing
process, changes are made, the modified agreement must be renoticed and
a new public hearing set. Therefore, unless the City Council adopts
• the ordinance granting the franchise under the specific terms and conditions
as presented, a new public hearing would again be required.
The proposed franchise agreement includes the language pertaining to
five specific issues discussed during previous meetings. Those items
are as follows:
1. Installation of system - Page 8, Section 10. This provision
requires Ultronics to commence installation of their system within
180 days after the effective date of the franchise.
2. Completion of system - Page 8, Section 10. Ultronics must pursue
installation of the system with diligence.
3. Refusal to accept a subscriber - Page 12, Section 18g. Ultronics
may not refuse to accept a subscriber unless it is not in the
public interest or not reasonably economically feasible for them
to furnish the service for that proposed subscriber.
4. Posting of a performance bond - Page 11, Section 16. A performance
bond in the amount of $5,000 must be furnished for the term of
the franchise.
5. Service to low income residents - Page 12, Section 18h. Ultronics
may not deny access to cable service to any group of potential
• residential cable subscribers because of the income of the residents
of the area in which such group resides.
Form A-113 (Rev. 11/79)
Item 14
Meeting hate ,9/15%87
FINANCIAL IMPACT
• Under the terms of the proposed franchise, Ultronics would be required
to pay a franchise fee of 3% for the first three years of the franchise
agreement and, after that date, pay whatever franchise fee is applicable
to Cox Cable. Since any revenue generated from the franchise tax under
the Ultronics agreement would result in a reduction in the franchise
tax currently generated by Cox Cable, we cannot anticipate any noticeable
increase or decrease in the amount of income generated for the City.
Notification to:
Marty Altbaum, Ultronics Inc.
Cox Cable
#54
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by th ('- y Coy moil of
Chula Vista, California
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