HomeMy WebLinkAboutRESOLUTIONS-1996-037-R-96•
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A RESOLUTION
APPROVING A SETTLEMENT WITH CONTINENTAL CABLEVISION
ACQUISITIONS OF NORTHERN ILLINOIS, INC. REGARDING
ISSUES RELATED TO PUBLIC, EDUCATIONAL AND GOVERNMENTAL ACCESS
WHEREAS, the City of Evanston, Illinois ("City") has been certified by the Federal
Communications Commission to regulate the basic Service Tier and associated equipment
of Continental Cablevision Acquisitions of Northern Illinois, Inc. ("Continental") in the City;
and
WHEREAS, Continental's current rate for basic cable service is $7.95 per subscriber
per month, plus the franchise fee paid to the City; and
• WHEREAS, the Cable Communications Policy Act of 1984, as amended by the Cable
Television Consumer Protection and Competition Act of 1992 and the Telecommunications
Act of 1996 ("Cable Act"), provides at 47 U.S.C. Section 542(b): "For any twelve-month
period, the franchise fees paid by a cable operator with respect to any cable system shall
not exceed 5 percent of such cable operator's gross revenues derived in such period from
the operation of the cable system to provide cable services...", and
WHEREAS, the Cable Act provides that the term "franchise fee" as used in section
542 does not include "in the case of any franchise in effect on the date of the enactment of
this title [October 30, 1984], payments which are required by the franchise to be made by
the cable operator during the term of such franchise for, or in support of the use of, public,
educational, or governmental access facilities" (47 U.S.C. Section 542(g)(2)(B)) and does not
• include "in the case of any franchise granted after such date of enactment, capital costs
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which are required by the franchise to be incurred by the cable operator for public,
educational, or governmental access facilities", and •
WHEREAS, the City places a high priority on the value of public, educational, and
governmental ("PEG") access to the community; and
WHEREAS, Continental and the City find it in the best interest of PEG access that the
current access studio under Continental's lease be available for up to six months after April
20, 1996, with the cost shared equally by them; and
WHEREAS, Continental contends that payments for PEG access that have been placed
in escrow by the City are the property of Continental because they were paid pursuant to
the terms of Franchise Agreement with a stated expiration date of April 19, 1996 and were
to be utilized for a specific purpose during the term of such Franchise Agreement; and
WHEREAS, Continental and the City have negotiated the terms of a Cable
Communications Franchise ("1996 Franchise") to replace the Cable Communications •
Franchise Agreement that was assigned to Continental pursuant to Resolution 55-R-95,
approved July 10, 1995; and
WHEREAS, in consideration of the agreements embodied in this Resolution,
Continental is willing to release any right to, and terminate its claim to, the payments for
PEG access that were placed in escrow by the City; and
WHEREAS, both Continental and the City find that it is in their mutual best interest
to agree to the 1996 Franchise Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON:
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•
W,
SECTION 1: Continental and the City will share equally the costs of the current PEG
• access studio under Continental's lease for six months after April 20, 1996.
•
SECTION 2: The City shall pay to Continental the amounts due pursuant to Section
1 of this Resolution on a monthly basis and Continental will add $0.40 per month per
subscriber to its basic rate for six (6) months for its share set forth in Section 1 after
appropriate notice to subscribers.
SECTION 3: Continental will add $1.00 per month per subscriber to its basic rate for
twenty-four (24) months and pay the proceeds to the City to be utilized for PEG access after
appropriate notice to subscribers.
SECTION 4: Continental will add $0.77 per month per subscriber to its basic rate for
thirty-six (36) months after appropriate notice to subscribers or the PEG Access capital
payments to the City set forth in Sections 8.13 C 1, 2 and 3 of the Franchise Agreement.
SECTION 5: Continental will add up to $1.92 per subscriber per month to its basic
rate for twelve (12) months commencing on the third anniversary of the effective date of the
Franchise Agreement for the PEG Access capital payments to the City set forth in Section
8.13 C 4 of the Franchise Agreement.
SECTION 6: Beginning with the effective date of this Resolution, the current $7.95
rate for basic cable service shall be deemed to contain no amounts for PEG access, and any
amounts paid by Continental for PEG access pursuant to Sections 1, 2, 3, 4, and 5 of this
Resolution and Section 8.13C of the 1996 Franchise may be treated by Continental as
external costs.
SECTION 7: Continental shall be permitted to reflect on its bills to subscribers as a
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separate item as external costs all amounts charged to subscribers and which are paid by
Continental to the City for PEG access pursuant to Section 1, 2, 3, 4 and 5 of this Resolution •
and Section 8.13C of the 1996 Franchise Agreement.
SECTION 8: Any amounts collected by Continental from subscribers pursuant to this
Resolution shall not be included as gross revenues for purposes of calculating franchise fee
payments.
SECTION 9: The City agrees that any charges to subscribers by Continental pursuant
to the terms of this Resolution are authorized and would not be precluded by any rate
orders of the City.
SECTION 10: This Resolution shall not become effective unless (a) Continental
releases any right to, and terminates its claim to, the payments for PEG access that have
been placed in escrow and (b) Continental accepts the 1996 Franchise in its entirety.
SECTION 1-1: The terms of this Resolution shall be applicable to any successor to or is
assignee of, Continental to the 1996 Franchise Agreement.
SECTION 12: That this Resolution shall be in full force and effect from and after the
date of its passage and approval in the manner provided by law.
ATTEST- Mayor
/ City Clerk
Adopted: La�I 996
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