HomeMy WebLinkAbout169 - 10/06/1998 - APPROVING AMENDMENTS TO THE CABLE TV FRANCHISE AGREEMENT BETWEEN THE CITY AND HERITAGE CABLEVISION O ORDINANCE NO. 169, 1998
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AMENDMENTS TO THE CABLE TV FRANCHISE AGREEMENT
BETWEEN THE CITY OF FORT COLLINS AND HERITAGE CABLEVISION
OF DELAWARE, INC., DOING BUSINESS AS TCI OF FORT COLLINS
WHEREAS, on October 19, 1993, the Council of the City of Fort Collins (hereinafter
referred to as the "Council')adopted Ordinance No.115, 1993,pursuant to which it granted a cable
tv franchise to The World Company, a Kansas corporation, doing business as Columbine
Cablevision, (hereinafter referred to as "Columbine"); and
WHEREAS,this cable tv franchise was granted to Columbine subject to certain terms and
conditions which are contained in the Franchise Agreement dated November 2, 1993, entered into
by and between the City and Columbine(hereinafter referred to as the"Franchise Agreement");and
WHEREAS, the Franchise Agreement granted to Columbine a non-exclusive franchise to
construct,reconstruct and maintain a cable tv system within the City (hereinafter referred to as the
"Cable System"); and
WHEREAS,on September 29, 1995,the City received from Columbine written notification
of Columbine's intent to sell the Cable System to Heritage Cablevision of Delaware, Inc., doing
business as TCI of Fort Collins (hereinafter referred to as "Heritage"); and
WHEREAS, on December 19, 1995, the Council adopted Resolution 95-178 approving
Columbine's sale of the Cable System to Heritage; and
WHEREAS, on February 16, 1996, Columbine transferred all of its interest in the Cable
System to Heritage and contemporaneously therewith executed that certain Assignment and
Assumption Agreement dated February 16, 1996,pursuant to which Heritage agreed to assume and
perform all of Columbine's obligations and responsibilities to the City under the Franchise
Agreement arising or accruing after February 16, 1996; and
WHEREAS, one of the obligations that Heritage assumed under the Franchise Agreement
is contained in Section XI.A. which provides that Heritage was required to complete an upgrade of
the Cable System by November 6, 1997, and that the Cable System be upgraded to a "550 MHZ
capable system, spaced to a 750 MHZ parameters and incorporating fiber trunking"; and
WHEREAS, Section XI. A. also provides that while Heritage could use alternative
technologies to achieve this upgrade of the Cable System, such alternative technologies must
"achieve comparable(or improved)customer benefits or services as would be provided by the [550
MHZ system]" and provided that the upgraded Cable System using different technologies is state
of the art, as dependable and reliable as the contemplated 550 MHZ system and as flexible as the
contemplated 550 MHZ in allowing for interactive services and technologies; and
WHEREAS, instead of building the contemplated 550 MHZ system, Heritage used digital
compression as an alternative technology to upgrade the Cable System; and
WHEREAS, after reviewing Heritage's upgrade of the Cable System,the City determined
that digital compression did not meet the standards for an upgrade of the Cable System as required
by Section XI. A. of the Franchise Agreement; and
WHEREAS, on December 8, 1997, the City sent written notice to Heritage that it was in
substantial breach of Section XI. A.of the Franchise Agreement as it relates to the required upgrade
of the Cable System; and
WHEREAS,Heritage responded to the City's notice by asserting that,contrary to the City's
position, the use of digital compression technology to upgrade the Cable System satisfied the
requirements of Section XI. A.; and
WHEREAS, while the City and Heritage attempted to resolve by negotiation their
disagreement over whether Heritage's digital compression upgrade of the Cable System was in
compliance with Section XI.A.,such negotiations were initially unsuccessful and as a result the City
scheduled a hearing to be held before the Council on August 18, 1998, to consider revocation of
Heritage's franchise in accordance with the revocation and termination provisions of Section XXIV
of the Franchise Agreement; and
WHEREAS, prior to the August 18, 1998, hearing, the City and Heritage reached a
settlement of their differences and as part of that settlement it is necessary to amend certain
provisions of the Franchise Agreement; and
WHEREAS, on file with the Fort Collins City Clerk is a proposed "First Addendum to
Franchise Agreement" which contains the settlement terms and conditions between the City and
Heritage and incorporates them as amendments into the Franchise Agreement(hereinafter referred
to as the "First Addendum"); and
WHEREAS, Sections 1 and 14 of Article XI of the City Charter and Section 6-3 of the City
Code set forth certain notice requirements that must be satisfied prior to the Council approving the
First Addendum; and
WHEREAS, Heritage has filed with the City Clerk an Affidavit of Publication evidencing
that such notice requirements have been satisfied; and
WHEREAS, the Council has considered the First Addendum, as well as the
Telecommunications Board's favorable recommendation concerning it, and after having done so,
has determined that approval of the First Addendum is in the best interests of the City and its
citizens.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the Council hereby finds that the notice requirements of Sections 1 and
14 of Article XI of the City Charter and Section 6-3 of the City Code relating to the amendment of
a cable tv franchise have been satisfied with respect to the approval of the First Addendum.
Section 2. That the Council hereby further finds that the proposed amendments to the
Franchise Agreement, as contained in the First Addendum, are in the best interest of the City and
its citizens.
Section 3. That the Council hereby approves the First Addendum.
Section 4. That the Mayor is hereby authorized and directed to execute the First
Addendum on behalf of the City.
Introduced, considered favorably on first reading, and ordered blished this 15th d of
September,A.D. 1998, and to be presented for final passage on t th of Octob , D. 19 8.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 6th day of Octob . 1998.
or
ATTEST:
T::
JII ML
City Clerk