2005 AGN MAR 15 I22 (5/17/05 #4)

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Item #22 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF MARCH 15, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DARYL PARRISH, CITY MANAGER SUBJECT: APPROVAL OF CABLE TELEVISION FRANCHISE AGREEMENT WITH ADELPHIA CABLE DATE: MARCH 7, 2005 BACKGROUND/ANALYSIS: Adelphia Cable is currently providing cable service within Colton under the provisions of an expired cable franchise agreement. Although the City is continuing to receive the statutory franchise fee, consisting of 5% of Adelphia's revenues from cable services in Colton, the City is not receiving any financial support for public, educational, and government access television (PEG), and is not able to effectively enforce any customer service standards. After exhaustive negotiations with Adelphia, in which numerous proposals and counter -proposals were exchanged, City staff have reached agreement in principle with Adelphia on a new franchise agreement. Highlights of the new franchise agreement include: • 10 -year term, which is emerging as the current standard. • The City's 5% franchise fee applies to revenue from cable, pay-per-view, channel leasing, home shopping revenue, installations, and every other source of revenue for Adelphia in Colton. • Adelphia must comply with all local, state, and national safety regulations. • Adelphia cannot install new poles where there are existing poles, and the City has the authority to require Adelphia to install new cable underground if any other utilities are underground. • Free basic cable for public buildings. • Strict customer service requirements and better communication with subscribers, including provision of information to subscribers and improved handling of complaints. • If Adelphia is providing different or better services to any other city within 50 miles, the City can require Adelphia to provide those services in Colton, unless Adelphia can produce evidence that it would be financial infeasible to do so. • The City will receive $150,000 in up -front PEG support and ongoing PEG support estimated at approximately $2,500 per month, which should enable the City to