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2000-024-Approving Amendment To Franchise Assumption Agreement With TCI Cablevision Of California.RESOLUTION 2000 - 24 RESOLUTION OF'THE TOWN COUNCIL OF THE-TOWN OF LOS GATOS APPROVING AMENDMENT TO FRANCHISE ASSUMPTION AGREEMENT WITH TCI CABLEVISION OF CALIFORNIA, INC., dba AT&T CABLE SERVICES AND AUTHORIZING TOWN .MANAGER TO EXECUTE'THE AMENDMENT WHEREAS: A. The Franchise Assumption Agreement between TCI of Cleveland, Inc., TCI Cablevision ofCalifornia and the Town of Los Gatos approved by Council on March 20,1996 required that KCAT, the local community access station, be carried on cable channel 6; and B. In 1999 TCI of Cleveland, Inc. and TCI Cablevision of California, Inc. merged with AT&T, now doing business as AT&'I' Cable Services; .and C. In September, 1999, a dispute arose between the Town and AT&T Cable Services whereby the Town asserted that AT&T was prohibited by the Franchise Assumption Agreement from relocating KCAT to cable channel 15 and D. The Town:and the City of Saratoga initiated a court action entitled Town of Los Gatos and City ofSaNatogav. Telecommunications ("TCI') of Cleveland, Inc.., et al., seeking judicial relief in the dispute regarding channel relocation; and E. The parties to the lawsuit subsequently entered into a settlement of the lawsuit, wherein the Town agreed,. for certain consideration, to relinquish its claim that KCAT must remain on cable channel b; and F. To reflect the. agreement reached by the parties in settling the lawsuit, the Franchise Agreement must be amended as set forth in Exhibit A attached. 1 RESOLVED.: 1. The Amendment to Franchise Assumption Agreement attached as Exhibit A is approved; and 2. .The Town :Manager is authorized to execute the Amendment to Franchise Assumption Agreement. PASSED Al>iD ADOPTED at a regular meeting ofthe. Town Council of the Town of Los Gatos, California held on the 20t'' day. of March, 2000, by the following vote: COUNCIL MEMBERS: AYES.: .Randy Attaway, .Jan Hutchins, Linda Lubeck, Joe Pirzynslc, Mayor Steven Blanton NAYS: None ABSENT: -None ABSTAIN: None SIGNED: MAY OF OWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: ~~~ (~-~ CLERK OF '~'I~E TOWN OF 5 GATOS LOS GATOS, !CALIFORNIA 2 ;~C~ ~, oar®.~~ AMENDMENT TO FRANCHISE, ASSUMPTION AGREEMENT This Agreement is made and entered into as of the last date subscribed below by and between THE TOWN OF LOS GATOS, a municipal corporation of the State of California ("TOWN"), and TCI OF CLEVELAND., INC., a Tennessee corporation ("GRANTEE"), and TCI CABLEVISION OF CALIFORNIA, INC., a California corporation as operator-in-fact ("OPERATOR"), collectively doing business as AT&T CABLE :SERVICES. This Agreement amends that certain Franchise Assumption Agreement entered into March 20, 1996 between TOWN, GRANTEE, OPERATOR, and BRENMOR CABLE PARTNERS, L.P., a California limited Partnership ("ORIGINAL ASSUMPTION AGREEMENT"), RECITALS' 1. The Original Assumption Agreement ;provided in section 4 that Town's community access channel known as KCAT would remain on cable channel 6 throughout the term of the Franchise, absent the occurrence of certain specified circumstances; .and 2. In that certain Settlement Agreement and Release made effective as of the day of March, 2000 by and between TOWN, KCAT, GRANTEE and OPERATOR ("Settlement Agreement") the parties have agreed to conditions pursuant to which the Los Gatos community access channel known as KCAT formerly located on cable channel 6 may be relocated to cable channe115; and WHEREAS, this Agreement amends the. Original Assumption Agreement to implement the Settlement Agreement; and WHEREAS, Brenmor Cable Partners, L.P., a party to the Original .Assumption . .Agreement; by that agreement fully transferred all of its rights, title, interest,. and obligations under its .franchise agreement with TOWN to GRANTEE and, in .light of said transfer, is not a party to this Agreement. AGREEMENT NOW, THBREFORE, in consideration of the promises, terms and conditions set forth in the Settlement Agreement and Release, the sufficiency and adequacy of which is hereby expressly acknowledged; the parties hereby agree as follows: Section 4 (Public Access Support) of the Original Assumption Agreement is hereby deleted in its entirety and replaced with the following: Page 1 of 3 EI(NIBIT A 4. a) .KCAT Channel Location: In recognition of the importance that local ,public and governmental access programming has to the TOWN, GRANTEE and TOWN agree that KCAT shall remain at channe115 until March 31, 2003 (the remaining term of the existing franchise) unless one or more of the following occurs: 1) Channel 15 must be provided to a broadcaster pursuant to one of the .first three prongs of the existing "must-carry" regulations codified in 47 U.S.C. § 534(b)(6), gamely, that a station "shall be carried on the cable system channel number on which the local commercial television station is broadcast over the air, or on the channel on which it was carried on .July 19, .1985, or on the channel on which it was carried on January 1, 1992, at the election of the station." This exception specifically excludes the language in 47 U.S.C. § S34(b)(6) which states "or on such other channel number as is mutually .agreed upon by the station and the cable operator;" or 2) Analog channel l 5 is eliminated or no longer exists at some point in the future; or 3) The existing "must-carry" laws and regulations are amended or revised to. create "must-carry" rights in Channel 15 for a station other than KCAT or Los Gatos' Community Access Station. This exception specifically excludes., however, any view "must-carry" .law or regulation which allows the cable .operator and a broadcaster to .select Channel l 5 solely by mutual agreement. 4) If KCAT is relocated from Channel 1.5 during the remaining term of the existing franchise and none of the .above criteria has been satisfied, and TOWN is paid the um of One Hundred Fifty Thousand Dollars ($'1.50,000)., as the mutually agreed upon compensation for any relocation, TOWN and KCAT shall receive at least thirty days' advance written notification. of any such relocation, and the $150,000 shall be paid to TOWN no later than thirty days before relocation occurs. This payment shall be TOWN's and/or KCAT's sole and exclusive remedy for the relocation. This payment.shall be owed to TOWNfor each relocation that occurs where none of the above criteria has been satisfied. GRANTEE and OPERATOR shall not pass on to .Los :Gatos cable customers- the cost of any said agreed upon compensation. . 1N WITNESS WHEREOF, the parties have set their .hand and seal to this Agreement as of the date set forth above. THIS AGREEMENT may be executed in counterparts, each of which shall constitute an original, but all of which constitute one agreement. Page 2 of 3 Dated: TOWN OF LOS GATOS, a municipal corporation of the State of California By: David W. Knapp, Town Manager Attest: Marian V. Cosgrove, Town Clerk Dated: TCI OF CLEVELAND, INC., a Tennessee corporation By: Dated: TCI CABLEVISION OF CALIFORNIA, INC., a California corporation By: 211348 v02.PA (4J2s02l:DOC) 3/6/00 4:02 PM (95267:0001) Page 3 of 3