HomeMy WebLinkAboutOrdinance 14805ORDINANCE NO. r ~`' ~4
AN ORDINANCE AMENDING ORDINANCE NO 14300, WHICH
GRANTED A FRANCHISE TO WIDEOPENWEST TEXAS, LLC FOR
USE OF PUBLIC RIGHTS-OF-WAY IN THE CITY OF FORT WORTH
FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING AND
OPERATING A CABLE TELEVISION SYSTEM, BY REVISING (i) THE
REQUIREMENT FOR PROVISION AND MAINTENANCE OF A
LETTER OF CREDIT AND (ii) THE SCHEDULE FOR CONSTRUCTION
AND COMPLETION OF A CABLE TELEVISION SYSTEM, AS SET
FORTH IN THE FRANCHISE AGREEMENT ATTACHED TO AND
MADE A PART OF ORDINANCE NO 14300; PROVIDING FOR
PUBLICATION; AND PROVIDING AN EFFECTIVE DATE.
The following statements are true and correct and constitute the basis upon which the
City Council of the City of Fort Worth ("City") has adopted this Ordinance•
A. Pursuant to M&C L-12869, on August 15, 2000 the City Council adopted
Ordinance No 14300, which granted WideOpenWest Texas, LLC ("Company") a franchise for
use of the Public Rights-of--Way for the purpose of constructing, maintaining and operating a
cable television system m the City A Franchise Agreement attached to and made a part of
Ordinance No 14300 set forth the terms and conditions to which that franchise was subject
(collectively the "Franchise") The Franchise became effective on or about September 15,
2000
B. On July 11, 2001 the City received a letter from Sean Stewart, Vice President of
Operations for Company, m which Company stated that rt lacked adequate financing to construct
the anticipated System in the City and requested that the Franchise be "suspended for a penod
equal to the earlier of 5 years or until such time as WideOpenWest is able to accomplish a
financing strategy that will allow us (WideOpenWest) to successfully execute the franchise
terms."
C. The Franchise requires that Company meet certain milestones and comply with
certain requirements within vanous timeframes. These timeframes were based on the
assumption by both the City and Company that Company would begin construction and/or
installation of its System and associated Facilities shortly after the Franchise took effect. The
City is wilting to amend the Franchise to the extent that rt will prevent Company from being m
default under the Franchise as a result of a delay m constructing and mstalhng the System and
associated Facilities, but only as specifically set forth m (i) this Ordinance and (ii) Franchise
Agreement Amendment No 1, attached hereto as Exhibit 1
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT
1. The City hereby amends the Franchise m accordance with Franchise Agreement
Amendment No 1, attached hereto as Exhibit 1 and hereby made a part of this Ordinance for all
purposes, which must be executed by Company, WideOpenWest Texas, Inc. and WideOpenWest
Holdings, LLC pnor to the effectiveness of this Ordinance. If Company,. WideOpenWest Texas,
Inc. and WideOpenWest Holdings, LLC fail to execute Franchise Agreement Amendment No 1,
attached hereto as Exhibit 1, pnor to the effectiveness of this Ordinance, then this Ordinance
shall be null and void for all purposes.
2. In accordance with and as required by Section 2 of Chapter XXV of the City's Charter,
the City Secretary is hereby directed to publish this Ordinance m its entirety once each week for
four (4) consecutive weeks within a penod of thirty (30) days following adoption by the Crty
Council in the official newspapers of the City Company shall pay for or reimburse the City for
all expenses incurred from such publication.
3. This Ordinance shall be m full force and effect following (i) its adoption, and (ii) its
publication m accordance with .Section 2, and (iii) m accordance with Section 1, the execution by
Company of Franchise Agreement Amendment No 1, attached hereto as Exhibit 1
ADOPTED I ® DGI f 0 / l~ `~`~~
Date M & C Number
EFFECTIVE DATE ~4 < a ~1(®/~
APPROVED AS TO FORM AND LEGALITY
By.
Peter Vaky
Assistant Crty Attorney
City of Fort Worth
2
City of Fort Worth, Texas
~1~A~or And ~ounc~il Ca~»i»un~cAt~ion
DATE REFERENCE NUMBER LOG NAME PAGE
10/9/01 G-13403 02WIDE 1 of 1
SUBJECT AMENDMENT OF ORDINANCE NO 14300 GRANTING A CABLE FRANCHISE TO
WIDEOPENWEST TEXAS, LLC
RECOMMENDATION
It is recommended that the City Council approve the attached ordinance amending Ordinance No
14300 which granted a cable franchise to WideOpenWest Texas, LLC to revise the schedule for
construction and completion of a cable television system
DISCUSSION
On August 15, 2000 (M&C L-12869), the City Council adopted Ordinance No 14300 which granted a
cable franchise to WideOpenWest Texas, LLC (WideOpenWest) Terms of the franchise required
WideOpenWest to complete construction of Phase I by September 30, 2001, and to complete the
system in subsequent phases Failure to complete construction of any given phase subjected
WideOpenWest to the assessment of liquidated damages by the City over the next three years.
On July 11, 2001, Mr Sean Steward, Vice President of Operations at WideOpenWest, 'requested that
the City "suspend" construction requirements and related liquidated damages for a period of up to five
years. WideOpenWest indicated the reason for its request is the lack of adequate financing in the wake
of major changes in the economic market last year
The attached ordinance keeps the WideOpenWest cable franchise in place, but prohibits the start of
construction until the City and the company agree in writing on a construction start date and a new
build-out schedule The City will identify any areas that were annexed since the effective date of the
original franchise, and will incorporate those areas into the construction schedule. The revision does
not require WideOpenWest to maintain a letter of credit until the new construction start date is
determined Within 30 days of when the City and WideOpenWest agree to a new construction start
date, a $100,000 letter of credit in favor of the City shall be issued
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds.
MG:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
APPROVED
Mike Groomer 6140 CITY C~U~CIL
Originating Department Head:
OCT g 2001
Pat Svacina 6109 (from)
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Additional Information Contact:
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Ciy S~cx~Mg of t1<e
• CitT of Fort Warty. Texss
Pat Svacina 6109
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