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| DATE:
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6/17/2013 7:00:00 PM |
| SUBJECT: |
| Council Consideration of a Resolution Approving the Change of Control of the Franchisee Under the Cable Television Franchise. |
| BACKGROUND: |
| The attached Transfer Resolution has been finalized between Gillette, Charter, Cablevision and Bresnan. Under Federal law, when the ownership of a business entity that holds a cable franchise is sold, the sale, known as a transfer of control must be approved by the city that issued the franchise. As part of the process our consultants have performed an audit of the franchise fee payments to make sure the account is up to date, which it will be with payment of $3,285. In addition the franchisee will pay a larger sum for common pole agreement charges. There was never a dispute about the pole charges, they had not been billed since the last transfer. The franchisee has agreed to continue supplying some cable drops to public institutions, as detailed in the letter from Charter, which is attached. The Resolution approves the Transfer of Control according to the terms of a more detailed Agreement, which will be presented to the City Council in time for the Monday meeting as soon as the final language has been approved. Among other issues such as HD delivery of PEG channels in the future, the Agreement goes into detail about how franchise fees are calculated on bundled packages of internet, cable and phone service, which is complicated by the fact that only the cable service revenue is charged a franchise fee and further complicated by the fact that the price of a bundled service is discounted. |
| SUGGESTED MOTION: |
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I move for the Approval of a Resolution Approving the Change of Control of the Franchisee Under the Cable Television Franchise.
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| STAFF REFERENCE: |
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Charlie Anderson, City Attorney
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