HomeMy WebLinkAboutResolution 4962-08-2018 A Resolution
NO. 4962-08-2018
AUTHORIZING A LAWSUIT ENTITLED
CITY OF FORT WORTH
V.
CHARTER COMMUNICATIONS, VI, LLC D/B/A SPECTRUM CABLE
WHEREAS, Fort Worth ("City") hired NewGen Strategies & Solutions ("NewGen") to conduct
a review of Fort Worth's cable services franchise fees payments from Charter Communications, VI, LLC
d/b/a Spectrum Cable ("Spectrum"); and
WHEREAS, NewGen's review determined that Spectrum has underpaid City the full amount of
franchise fee payments owed to City; and
WHEREAS, Spectrum has refused to honor its contractual obligations and reimburse the City for
full amount of franchise fee payments; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT:
1.
The City Council authorizes the City to hire the law firm of Lloyd Gosselink Rochelle &
Townsend, P.C. to file a lawsuit against Charter Communications, VI, LLC d/b/a Spectrum Cable to
recover unpaid franchise fees owed to the City of Fort Worth.
Adopted this 7th day of August, 2018.
_ OFF
ATTEST:
".0
By' ---- ----_
l ary J. Kay er i cretary j$.. . '.
ORT WORT
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/712018 - Resolution No. 4962-Q8-201.8
DATE: Tuesday, August 7, 2018 REFERENCE NO.: G-19337
LOG NAME: 21SPECTRUM LITIGATION
SUBJECT:
Adopt Resolution Authorizing City of Fort Worth to Hire the Law Firm of Lloyd Gosselink Rochelle &
Townsend, P.C. to File a Lawsuit Against Charter Communications, VI, LLC d/b/a Spectrum Cable to
Recover Unpaid Franchise Fees Owed to Fort Worth (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution authorizing the City of Fort Worth
to hire the law firm of Lloyd Gosselink Rochelle & Townsdend, P.C. to file a lawsuit against Charter
Communications, VI, LLC d/b/a Spectrum Cable to recover unpaid franchise fees owed to Fort Worth.
DISCUSSION:
In June 2017, the City of Fort Worth hired NewGen Strategies & Solutions (NewGen)to conduct a review
of Fort Worth's cable services franchise fees payments from Charter Communications, VI, LLC d/b/a
Spectrum Cable (Spectrum).
NewGen found that Spectrum has underpaid Fort Worth and other cities in Texas the full amount of
franchise fees owed to each city. Fort Worth will join with the other cities in this lawsuit, thereby diffusing
the cost of litigation.
The anticipated cost to Fort Worth of the litigation is approximately $60,000.00 (Fort Worth's share of the
potential recovery of unpaid franchise fees minus the share of anticipated litigation costs).
Accordingly, it is recommended that the City Council adopt the attached Resolution authorizing the hiring
of the law firm of Lloyd Gosselink Rochelle &Townsend, P.C. to file a lawsuit against Spectrum for the
purpose of recovering unpaid franchise fees.
This M&C does request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget of the General
Fund, as appropriated and that prior to an expenditure being made, the participating department has the
responsibility to validate the availability of funds.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year Chartfield 2
Logname: 21 SPECTRUM LITIGATION Page I of 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Steve Cooke (5118)
Roger Venables (6334)
Additional Information Contact: JB Strong (7627)
Logname: 21 SPECTRUM LITIGATION Page 2 of 2