HomeMy WebLinkAboutAgenda Report - December 21, 2005 K-04AGENDA ITEM 4
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Approving SBC Encroachment Permit Condition (Video
Programming Limitation) for New Facilities Installations
MEETING DATE: December 21, 2005
PREPAFIED BY: Management Analyst, City Manager's Office
RECOMMENDED ACTION: That the City Council adopt a resolution approving SBC
Encroachment Permit Condition (Video Programming Limitation) for
new facilities installations.
BACKGROUND INFORMATION: In November 2005, SBC announced that network lab and field trials
are underway for Project Lightspeed, a program to deploy fiber optic
service into residential areas. Construction of the network is
planned to begin the first quarter of 2006. Local SBC
representatives have provided to staff a cursory overview of the program. Lodi is expected to be
included in the earliest phases of the program.
Project Lighspeed will allow SBC to provide services within the area served using internet protocol. The
video capabilities of this program may conflict with existing and future cable franchises with the City.
It is recommended that the following language be included as a condition on all future SBC
encroachment permits issued for facilities installation:
"By accepting this permit, SBC agrees on behalf of itself and its affiliates and assigns that it will
not provide video programming (including but not limited to programming delivered using internet
protocol) over its facilities located within the City's rights of way to subscribers within the City
without first obtaining a cable franchise or an open video system franchise from the City."
FISCAL IMPACT: The City of Lodi estimates revenues of $233,000 from its cable franchise fee of three
percent for fiscal year 2005-06. The maximum rate allowed and most commonly negotiated is actually
five percent, potentially contributing more than $388,000 annually pending successful negotiations during
the upcoming cable franchise renewal. SBC claims that it is not providing cable services and therefore
not subject to paying franchise fees but the provision of video services has the potential to impact
services currently provided by Cable Access Television (CATV). The intent of this proposed limitation is
to stop the erosion of revenues from franchise fees and avoid possible litigation from our current CATV
franchise holder.
FUNDING AVAILABLE: Not applicable. AAA0 )
J L. Hamilton
nagement Analyst
APPROVED:^
Blair King, i Manager
RESOLUTION NO. 2005-264
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING SBC ENCROACHMENT PERMIT
CONDITION (VIDEO PROGRAMMING LIMITATION) FOR
NEW FACILITIES INSTALLATIONS
WHEREAS, in November 2005, SBC announced that network lab and field trials
are underway for "Project Lightspeed," a program to deploy fiber optic service to
residential areas; and
WHEREAS, construction of the network is planned to begin the first quarter of
2005, with the City of Lodi expected to be in the earliest phases of the program; and
WHEREAS, Project Lightspeed will allow SBC to provide video services within
the area served using internet protocol. The video capabilities of this program may
conflict with existing and future cable franchises within the City of Lodi; and,
WHEREAS, staff recommends that the City Council approve the inclusion of the
following condition on all future SBC Encroachment Permits issued for facilities
installation:
"By accepting this permit, SBC agrees on behalf of itself and its affiliates
and assigns that it will not provide video programming (including but not
limited to programming delivered using internet protocol) over its facilities
located within the City's rights of way to subscribers within the City
without first obtaining a cable franchise or an open video system
franchise from the City."
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
approves the SBC Encroachment Permit Condition (Video Programming Limitation) for
new facilities installations and its inclusion on all future SBC Encroachment Permits
issued for facilities installation, as shown in the preceding paragraph.
Dated: December 21, 2005
I hereby certify that Resolution No. 2005-264 was passed and adopted by the
Lodi City Council in a regular meeting held December 21, 2005, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Mounce,
and Mayor Hitchcock
NOES: COUNCIL MEMBERS — Johnson
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLA STON
City Clerk .
2005-264