G-05-04-28-9B2 - 4/28/2005ORDINANCE NO. a_ 05 -0L/ -8-913a)
AN ORDINANCE AMENDING ORDINANCE NO. G -98-10-22-9A1 AND
PREVIOUS RELATED ORDINANCES, WHICH GRANTED A
FRANCHISE TO TIME WARNER ENTERTAINMENT -ADVANCE/
NEWHOUSE PARTNERSHIP ("TIME WARNER") RELATED TO THE
DELIVERY OF CABLE SERVICES; SAID AMENDMENT REVISING
THE FRANCHISE FEE PERCENTAGE, AND CONTAINING OTHER
PROVISIONS
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
FINDINGS
A. The City Council finds that Ordinance No. G -98-10-22-9A1, adopted on October 22,
1998, is the most recent amendment extending a cable television franchise previously
granted to Time Warner Entertainment-Advance/Newhouse Partnership ("Time Warner
Cable Franchise"). The original cable television franchise was granted by Ordinance No.
501 on July 14, 1977, and has been amended by Ordinance No. 532, Ordinance No. 533,
Ordinance No. 2208, Ordinance No. 2594, Ordinance No. 2602, and Ordinance No. G-
98 -10-22-9A1.
B. The City Council finds that the referenced relevant Time Warner cable franchise
agreement had four percent (4%) of defined gross revenue as the franchise fee
percentage, which was lower than the federally permitted franchise fee of five percent
(5%) of gross revenue as allowed by 47 USC Sec. 542.
C. The City Council finds that it has been anticipated that there would be a revised cable
franchise with Time Warner ("Time Warner Renewal Cable Franchise") which would,
among other things, increase the franchise fee to the maximum federal level of five
percent (5%); however, due to current pending state legislation, Time Warner has
requested that the City delay adoption of Time Warner Renewal Cable Franchise until
January 2006. Time Warner and the City affirm that there is currently agreement
between the parties to partially amend the referenced relevant Time Warner cable
franchise agreements at this time to, among other things, increase the franchise fee to a
five percent (5%) franchise fee.
I.
Ordinance No. G -98-10-22-9A1 shall be amended as follows:
A. The existing Section I(1.) shall be deleted and replaced by the following:
1. The term of the Franchise shall be extended until January 31, 2006, on the same
terms and conditions as set forth in previous related ordinances except as noted
hereafter.
B. The existing Section 7 of Ordinance No. 2594 shall be amended as follows: in each and
every instance where words or numerals appear denoting "four percent (4%)," that
percentage amount shall be increased to five percent (5%).
It.
This ordinance shall take effect sixty—one (61) days after final adoption by the City
Council, with the five percent (5%) franchise fee accruing from that date forward, subject to
written acceptance of this amending ordinance by Time Warner Entertainment-
Advance/Newhouse Partnership within thirty (30) days from the adoption hereof.
On behalf of Time Warner Entertainment-Advance/Newhouse Partnership, the signer of
this amending ordinance to the referenced franchise agreement represents and warrants that he or
she has full authority to execute same on behalf of the entity.
IV.
A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly
repealed.
B. The invalidity of any section or provision of this ordinance shall not invalidate other
sections or provisions thereof.
C. The City Council hereby finds and declares that written notice of the date, hour, place
and subject of the meeting at which this Ordinance was adopted was posted and that such
meeting was open to the public as required by law at all times during which this
Ordinance and the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code,
as amended.
Alternative 1
By motion duly made, seconded and passed with an affirmative vote of all the Council members
present, the requirement for reading this ordinance on two separate days was dispensed with.
READ, PASSED, and ADOPTED on first reading this day of
Alternative 2
READ and APPROVED on first reading this )'4 day of
2
, 2005.
, 2005.
READ, APPROVED, and ADOPTED on second reading this (3 day ofl., 2005.
R
CHRISTINE R. MARTINEZ, City Secretary
3
ELL, Mayor
DATE: April 21, 2005
SUBJECT: City Council Meeting - April 28, 2005
ITEM: *9.B.2. Consider an ordinance authorizing the Mayor to execute an amended
cable franchise agreement with Time Warner Entertainment
Advance/Newhouse Partnership. (Second Reading)
Department: Administration Department
Staff Person: Will Hampton, Communications Director
Justification:
This amendment increases the franchise fee to 5 percent from 4 percent for Time Warner
Entertainment Advance/Newhouse Partnership, and extends the term to Jan. 31, 2006.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: N/A
Background Information:
The timing of the approval of this amendment must coincide with the amendment to the
Grande franchise to maintain competitive neutrality between the two.
Public Comment: N/A