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RESOLUTION NO. 70
Series of 1999
A RESOLUTION OF THE CITY OF ASPEN, COLORADO, APPROVING A PERMIT
EXTENSION AGREEMENT BETWEEN THE CITY OF ASPEN, COLORADO, AND TCI
OF NORTHERN NEW JERSEY d/b/a TCI OF CENTRAL COLORADO, INC., AND
AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT ON BEHALF
OF THE CITY OF ASPEN, COLORADO.
WHEREAS, there has been submitted to the City Council a Permit Extension
Agreement between the City of Aspen, Colorado and TCI of Northern New Jersey a copy of
which contract is annexed hereto and made apart thereof.
NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
That the City Council of the City of Aspen hereby approves that Permit Extension
Agreement between the City of Aspen, Colorado, and TCI of Northern New Jersey, Inc., a
copy of which is annexed hereto and incorporated herein, and does hereby authorize the City
Manager of the City of Aspen to execute said contract on behalf of the City of Aspen.
Dated: -4,()-;;~
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,1999.
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true
and accurate copy of that resol~n adopted by ~e City Council of the City of Aspen,
Colorad~, at a meeting held 'h~ D ,1999.
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PERMIT EXTENSION AGREEMENT
WHEREAS, TCI of Northern New Jersey, Inc., d/b/a TCI of Central Colorado, Inc. (hereinafter
referred to as "TCI of Central Colorado"), currently holds a CATV Permit with the City of
Aspen, dated August 14, 1984; and,
WHEREAS, the CATV Permit is due to expire August 12, 1999; and,
WHEREAS, the City of Aspen and TCI of Central Colorado have been engaged in informal
negotiations to renew the CATV Permit in accordance with Section 626(h) of Title VI of the
Communications Act of 1934, as amended; and,
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WHEREAS, the amount of time required to conclude negotiations and allow for public review
will extend beyond the initial expiration date, and the City and TCI of Central Colorado desire to
extend the term of the Permit for a period of one year in order to allow the parties sufficient time
to conclude the negotiations in a thoughtful and appropriate manner; and,
WHEREAS, it is in the public interest to extend the current Permit for an additional period of
time so that cable service to the public will not be interrupted;
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
SECTION 1. The term of the CATV Permit is hereby extended for a period of one year, to and
including August 12, 2000.
SECTION 2. TCI of Central Colorado will review the system as soon as practicable to
determine ifit is 450 MHz capable.
SECTION 3. TCI of Central Colorado shall maintain compliance with the FCC Customer
Service Standards set forth at 47 CFR ~76.309.
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PennitExtension Agreement
City of Aspen, Colorado
Tel of North em New Jersey, Inc.
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SECTION 4. TCI of Central Colorado shall be available, upon reasonable written request, but
no more often than annually, to appear at a public hearing before the City Council for a review of
the cable system.
SECTION 5. The parties hereto, by entering into this extension agreement, do not waive any of
their respective rights as set forth in Section 626 of the Cable Communications Policy Act of
1984, as amended, relating to the procedures for obtaining franchise renewals.
SECTION 6. Except to the extent amended or modified by changes in federal law, the terms
and conditions of CATV Permit dated August 14, 1984 shall remain in full force and effect
through the extended term, subject to applicable law.
SECTION 7. The parties shall continue to negotiate in good faith and bring to conclusion as
soon as practicable a renewed CATV Permit Agreement in accordance with Section 626(h) of
Title VI of the Communications Act of 1934, as amended.
PASSED and APPROVED this _ day of July 1999 by the City of Aspen.
CITY OF ASPEN, COLORADO
BY:
Name/Title:
~TTEST: ...:kJ;1
~1I-!ltityCle~ ~
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ACCEPTED this -1!L day of July 1999 by TCI of Northern New Jersey, Inc., d/b/a TCI
Cablevision of Central Colorado, Inc., subject to applicable law.
BY:
Scott Hiigel, Senior Vice Pre
Pennit Extension Agreement
City of Aspen, Colorado
Tel of North em New Jersey, Inc.
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July 30 1999
Ms. Amy Margerum
City Manager
City of Aspen
130 South Galena Street
Aspen, Colorado 81611
RE: Renewal of Cable Television Permit dated August 14. 1984.
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Dear Ms. Margerum:
Pursuant to our discussions with regard to the renewal ofthe Cable Television Permit
held by TCI of Northern New Jersey, Inc. ("TCI"), please consider this letter our
proposal for the purposes of informal renewal negotiations with the City consistent with
Section 626 (h) of Title VI of the Communications Act of 1934, as amended.
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Subject to reaching a mutually agreeable franchise renewal with the City, TCI proposes
to upgrade its Cable System in Aspen to 550 MHz hybrid fiber/coaxial desigu with fiber
to the node architecture. Upon completion ofthe upgrade, the system will be two-way
active with capability of providing our customers in Aspen advanced cable services
including high-speed cable InteJ1'letacces~; ...w. e anticipate the upgrade and two-way
activation to be complete by Qctob",r 2001.
Additionally, as we have discussed, we are willing to pursue the matter of an I-Net to
serve the City. We will schedule a meeting as soon as reasonably possible among the
designated City persounel, a TCI network specialist, and myself to discuss the City's
institutional network needs and the associated costs.
Thank you for your attention to this matter. I look forward to meeting with you and to
continuing our discussions. If you have any questions regarding this proposal, please feel
free to call me at 925-4311.
Very truly yours,
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.' Jim Niswender
General Manager
Tel Cablevlelon of
Central COIol1ldo, Inc.
201 Aspen Airport Business Center
Aspen, Colorado 81611
(970) 925-4098
FAX (970) 925-4106
An Equal 'OpportUnity Employer
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FROM:
Mayor and City Council ^ I A /
Amy Margerum, City Manager 'JJ'VV .
TO:
RE:
One Year Extension To TCI/A TT Cable Franchise
Agreement
DATE:
August 9, 1999
Summary
The City and TCI have been working on terms for a new franchise
agreement for cable services for the past two years. Our existing
agreement will expire on August 12, 1999. At this point we are still
negotiating the terms of a longer term franchise extension with
TCI/A TT, therefore we are proposing to simply extend our existing
~ agreement for one year. At any point during the one year time frame
we can propose a longer term agreement and hold a subsequent City
election on the franchise renewal.
Recommendation
Staff recommends City Council approval of a one-year extension of
the TCI/A TT franchise to allow for the necessary time to either
negotiate a new franchise agreement with TCI or pursue other options.
Related Actions
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City Council approved funding for the study of a potential municipal
telecommunications system. This study, conducted by NMPP, is
slated to proceed this summer. The Aspen Institute Community
Forum has agreed to convene a valley-wide group to look into the
future of telecommunications in the Roaring Fork Valley and will also
be able to act as a sounding board for Aspen's analysis of alternatives
to a TCI/ATT franchise.
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On July 30 1999, TCI submitted a letter (attached) indicating their
intent to supply the City with a 550 MHz hybrid fiber/coaxial system by
October 31,2001. Jim Niswender, General Manager of TCI for the
Aspen area, will be present at the Council meeting to explain TCI's
position. The City should seriously consider TCI/A TT's new proposal,
and, provided other terms and conditions are satisfactory, staff will
return to City Council with a proposed franchise extension.
As you may recall, the City's initial proposal to TCI in November of
1998 (see attached summary) was for a five year franchise if the
system was upgraded to a 550 MHz system with high speed internet
access. It appears that TCI/A TT is very close to meeting our original
proposal and we will seriously work with TCI/ATT to negotiate a five
year extension.
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Proposed Motion
I move to approve Resolution No.6..9 Series of 1999 which authorizes
the City Manager to execute a One Year Permit Extension with
TCI/A TT.
ALM-08/05/99-g:~ci\CCTCI1 YR. DOC
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In early November, 1998, the staff presented City Council with a
recommendation for a new franchise agreement with TCI .
The key points in the City's proposal were:
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* Grant of franchise non-exclusive
* Tenn of franchise = 5 years
* Franchise fee = 5% of gross revenues (maximum allowed)
* TCI to pay for consultant fees and election costs
* Perfonnance evaluations held annually
* TCI to furnish a $ 1 million Perfonnance Bond pending completion
of the cable system upgrade
* 3 PEG (Public, Educational and Government) Access Channels
provided initially
* 3 additional Access Channels depending on usage
* TCI to pay Grassroots$50,000 for capital equipment
* TCI to pay the City $50,000 for capital equipment for meeting room
overage
* Option for additional funding for PEG at $1 per subscriber per
month
* 550 MHz HybridlFiber Coaxial (fIFe) Cable on or before the year
2000. (This equates to approximately 76 analog channels).
* The system needs to be capable of supporting telecommuting. video-
on-demand, distance learning, etc.
* TCI to make available it @Home service (or another comparable
high speed internet service) to subscribers.
* TCI to provide an Institutional Network (I-NET) to connect all
public buildings.
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