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HomeMy WebLinkAboutCC Resolution 5449 (Television Franchise)RESOLUTION NO. 5449 RESOLUTION OF SAN RAFAEL CITY COUNCIL AMENDING RESOLUTION NO. 5026 WHEREAS, the City desires extension of cable television services into the Fairhills area of San Rafael, and extension of reduced rates to Senior Citizens and the handicapped; and WHEREAS, Viacom is willing to meet these desires subject to the terms and conditions herein; NOW, THEREFORE, it is agreed between the parties as follows: 1. Pay Television Franchise Fee Pursuant to the regulations of the Federal Communica- tions Commission, Viacom will pay to the City 5% of the gross receipts as defined by 10.76.010(10) of the San Rafael Municipal Code derived for pay television and cable service operations in the City of San Rafael, beginning May 1st, 1978. 2. Senior Citizens A. A special Senior Citizens' rate shall be extended to San Rafael residents over the age of sixty-five (65) whose income is below the poverty level established annually by the Federal Government. The City shall qualify all applicants for this special rate and subscribers' eligibility shall be re- established annually. B. Viacom shall continue to administer a Senior Citizens' discount for those individuals qualifying for Medi -Cal or SSI income payments. C. The rates for qualified applicants shall be one-half (1/2) of the authorized monthly charges for cable tele- vision service and installation. D. The aggregate amount of Senior Citizens' dis- counts shall not exceed $7,500 annually and the Senior Citizen discount provisions will terminate altogether five (5) years from the date of this agreement. E. By March 1st of each year Viacom shall submit an annual statement to the City of San Rafael documenting the direct costs of the Senior Citizens' discount. 3. Handicapped Rates Rates for adult individuals qualifying for handicapped parking stickers under the California Highway Patrol designation system shall be eligible for the Senior Citizen rate described above. Th cost of this service will not be included in the $7,500 detailed in Section 2.D. of this Resolution. 4. Fairhills Viacom will extend its cable television distribution lines throughout the Fairhills area under the following conditions: A. Fairhills shall be divided into the two geographic areas outlined in the attached map. B. If within 3 months of the adoption of this Resolution or by July 1, 1978, 50% residents of Area I have subscribed and contracted for a minimum three (3) year term, the construction will begin for Area I. C. If within 6 months of the adoption of this Resolution or by October 1, 1978, 50% residents of Area II have subscribed and contracted for a minimum three (3) years term, the construction will begin for Area II. D. If a 50% subscription is not reached in Area I, extension of all service to the Fairhills area will not be imple- mented. E. Viacom shall, on the first of each month, supply the City and the President of the Fairhills Homeowners Association a progress report regarding the marketing efforts in the Fairhills area. F. If a subscription rate in excess of 50% is achieved in Area I, the extra subscribers shall be applied to the Area II subscription requirements. G. The entire cable system shall be installed in accord with specifications jointly endorsed by the San Rafael City Engineer and Viacom. Viacom shall submit a time schedule for completion of the project which is acceptable to the City Engineer. -2- H. Monthly rates for the primary outlet in the Fairhills service area shall be at the same monthly rate as set by Resolution 5026 for underground service and no premium shall be included. I. Each subscriber shall supply in place a one -inch (1") service duct to Viacom's specifications at his or her own expense for that portion of the service duct which is on private property (i.e., from the service box in the street right-of-way to the building point of entry). If a subscriber so requests, Viacom shall construct this installation at its actual cost for time and materials. J. The normal charge of $37.50 for installation of service to the residence shall be waived by Viacom for those individuals subscribing before October 1, 1978. R. Upon completion of construction of the distri- bution system, the City and Viacom agree that the underground duct system (i.e., conduit terminal boxes, pedestals, labor and street restoration material) shall be dedicated to the City. All other system components, including but not limited to coaxial cable, amplifiers, and subscriber taps shall remain the property of Viacom. Viacom shall have exclusive use of the duct system without cost for the term and subsequent renewals of the franchise. L. It shall be the responsibilty of Viacom to maintain all parts of the system including the underground duct system. M. (1.) As an offset to the extensive cost to finance and construct the underground cable television duct facilities in Area I, the City shall refund to Viacom franchise fee payments on pay television revenues until Twenty- five Thousand Dollars ($25,000) has been recovered by Viacom. (2.) As an offset to the extensive cost to finance and construct the underground cable television duct facilities in Area II, the City shall refund to Viacom fran- -3- chise fee payments on pay television revenues until Fifty Thousand Dollars ($50,000) has been recovered by Viacom. (3.) In the event the City's legal authority to assess such franchise fees ceases, the City's obligation with respect to the $75,000 offset shall then terminate and any unpaid portion shall be absorbed by Viacom. (4.) In respect to the yearly funding level for Senior Citizen services, if the amount required to finance the service is less than $7,500 the difference shall be credited to $75,000 pledged in M (1. and 2.) of this Resolution. This calculation shall be made for each of the 5 years the Senior Citizen Rate shall be in effect. M. In the event that service is not extended to the Fairhills area, the franchise fee for Showtime shall be reimbursed to the City effective November 15, 1977. 5. Rate Modifications Effective with the next billing cycle the following rates shall be in force: (1) Fairhills area (2) Senior Citizen/Handicapped -4- Basic Service Same subscription rates as set forth in Resolution 5026. One-half of the rates for basic service, additional outlets and installation. The bulk apartment rate for Senior Citizens shall continue at the rates specified in Resolution No. 5026 of the San Rafael Municipal Code. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City on Month the third day of April , 1978, by the following vote, to wit: AYES: COUNCILMEN: Jensen, Miskimen, Mulryan, Nixon and Mayor Bettini NOES: COUNCILMEN: None ABSENT: COUNCILMEN: None 34 B/9-13 NNE M. LEONCINI, City Clerk -5-