7118-03
ORDINANCE NO. 7118-03
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
RELATING TO AMENDING THE PUBLIC EDUCATION AND
GOVERNMENT ACCESS SUPPORT PAYMENTS FOR
VERIZON MEDIA VENTURES CONTAINED WITHIN THE
VERIZON MEDIA VENTURES' FRANCHISE GRANTED UNDER
ORDINANCE NO. 6046-96; PROVIDING AN EFFECTIVE DATE.
WHEREAS, Verizon Media Ventures, Inc. ("Verizon"), a Delaware corporation, has a
Cable Television Franchise Agreement with the City of Clearwater, Florida granted under
Ordinance No. 6046-96 and effective June 20, 1996 ("Franchise Agreement"); and
WHEREAS, Appendix C of the Franchise Agreement requires Verizon to make
annual payments in support of Public, Educational; and Government Access Programming
("PEG"); and
WHEREAS, Section C of Appendix C of the Franchise Agreement provides that
Verizon shall have the right to renegotiate with the City of Clearwater the amounts and
manner in which Verizon funds support for PEG after the fourth anniversary of the effective
date of the Franchise Ordinance if Verizon's actual number of Subscribers in the City after
such four-year period is below twelve thousand five hundred (12,500); and
WHEREAS, Section C of Appendix C of the Franchise Agreement also provides that
the City of Clearwater shall negotiate in good faith a modification to Verizon's obligations
for support of PEG, and in such negotiation, in addition to any costs Verizon may be
obligated to share, it may be appropriate for Verizon to continue to provide some support to
the City, taking into account the City's needs and the reasonable profitability of the System;
and
WHEREAS, Verizon's actual number of Subscribers is below the four-year threshold
of twelve thousand five hundred (12,500); and
WHEREAS the City of Clearwater desires to treat all cable television providers in an
equitable an nondiscriminatory manner; and
WHEREAS, on November 14, 2002, members of the City of Clearwater staff met
with representatives of Verizon to consider renegotiation of the level of PEG support
payments made by Verizon to the City of Clearwater; and
WHEREAS, the City of Clearwater has determined that the level of PEG support
currently required of Verizon is in excess of the PEG obligations required of Time Warner
Entertainment - Advance/Newhouse partnership; and
Ordinance No. 7118-03
WHEREAS, on December 20, 2002, the City of Clearwater staff agreed to propose
and Verizon has accepted a reduced level of PEG support payments to be made by
Verizon to the City of Clearwater; and
WHEREAS, in the event the City determines, following a public hearing, that the
public access benefits received by Clearwater residents are materially reduced, then
Verizon has an obligation to make the appropriate payments to the City; now therefore,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF CLEARWATER, FLORIDA:
Section 1. The City Commission of the City of Clearwater, Florida hereby
amends Section C, Appendix C of the Cable Television Franchise Agreement between
the City of Clearwater, Florida and Verizon Media Ventures, Inc. granted under
Ordinance No. 6046-96 and effective June 20, 1996, as follows:
******
C. Public. Education and Government Access Support. Grantee agrees to
pay to the Grantor, within thirty (30) days after the effective date of this Franchise
Ordinance and on the anniversary of such date for the term of this Franchise, the
following amounts:
1997 Year 1 $50,000
1998 Year 2 $50,000
1999 Year 3 $75,000
2000 Year 4 $75,000
2001 Year 5 $75,000
2002 Year 6 $100,000
2003 Year 7 $100,000
2004 Year 8 $20,000 $100,000
2005 Year 9 $20,000 $125,000
2006 Year 10 _$20,000 $125.000
Total: ~585,000 $875,000
Such payments shall not be deducted from franchise fees or collected from subscribers
as an external cost pursuant to FCC rules. Grantor shall only use such money in
support of public, education and government access programming. Grantor shall
provide an accounting to Grantee annually for such funds.
Grantee will pay the reduced PEG support payments set forth above in years 2004.
2005. and 2006. so lonq as the County continues to provide public access benefits to
City residents that are substantially the same as the City residents enioy on the
effective date of this Ordinance. In the event the Grantor determines. followinq a public
hearinq. that the public access benefits enioyed by City residents are materially
reduced. then Grantee shall be obliqated to make the appropriate PEG support
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Ordinance No. 7118-03
payments to the Grantor in an amount and in a manner that is equitable and
nondiscriminatory with respect to all cable television providers.
Gr3ntee shall h3ve tho right to renegotiato '.vith Gr3ntor the 3mounts 3nd manner in
which Grantee funds support f-or public, oduc3tion 3nd govornment access
programming after tho fourth anniversary of the offective dato of the Fr3nchise
Ordin3nce if: (i) the County adopts a model for funding support f-or such programming
that is inconsistent 'J.'ith or bils to t3ke into 3ccount tho 3mounts to be paid by Gr3ntoe
to Gr3ntor hereunder; or (ii) Grantee's actual number of Subscribers in the City 3fter
such four year poriod is belm'.. twelve thousand five hundred (12,500). To the oxtent
necessal)' for Grantee to 3'Joid further cost or obligation, Grantor shall negoti3te in
good bith a modification to Gr3ntee's obligations for support of public, educ3tion 3nd
govornment accoss support, equipment and facilitiescont3ined in this Ordinance, if
under FCC regulations or st3te or federal law, Gr3ntee is required to sharo costs '.vith
the provider of such bcilities (currently Time 'Narner Entert3inment
Adv3nce!Ne'Nhouse P3rtnership ("Time 'N3rner"). In such negoti3tion, in addition to
any costs Gr3ntee m3Y be oblig3ted to sh3re, it may be 3ppropri3te for Grantee to
continue to provido some support to the City, taking into 3ccount the City's neods and
the reason3ble profitability of the system.
******
Section 2. This ordinance shall take effect immediately upon adoption.
PASSED ON FIRST READING
May 15. 2003
PASSED ON SECOND AND FINAL
READING AND ADOPTED
June 5, 2003
B3tfl r
Mayor -Comm issioner
Approved as to form:
~~j) ~
Assistant City Attorney
Attest:
~1~/1~~
Cynthia . ~ udeau. '-'7
rCitYClerk ....-:. _
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Ordinance No. 7118-03