2005.08.02_TC_Minutes_SpecialTOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
PUBLIC HEARING
Tuesday August 2 2005 1:30 P.M.
Mayor Harold R. Hagelmann called the Public Hearing to order in Commission Chambers
at 1:30 P.M., advising its purpose was as follows:
ALLOWING FOR COMMENT ON THE PROPOSED REQUEST TO TRANSFER
THE CABLE TELEVISION FRANCHISE (FL0598) FROM SOUTHEAST FLORIDA
CABLE, INC., D/B/A ADELPHIA CABLE, TO TIME WARNER CABLE AND THEN
TO COMCAST CABLE.
Town Clerk Doris Trinley called the roll. The Mayor, Vice Mayor Joseph J. Asselta, and
Commissioners Rachael Scala-Pistone, Miriam S. Zwick and Jim Newill, CPA, were
present.
Town Attorney Thomas E. Sliney and Town Manager Dale S. Sugerman were present,
as were members of the general public.
• Gwen Cogan, Director of Government and Community Affairs, and Allison Jenkins
represented Adelphia and Comcast respectively.
Town Manager Dale Sugerman advised the Town's 10-year franchise for cable services
expires March 1, 2006, and this hearing was being held at the direction of the FCC, with
September 10, 2005 being the last day for the Town to submit FCC form #394 which
would include comments and problems, along with any deficiencies noted, regarding
customer service. Mr. Sugerman further advised that the Town had no ability to affect
rates.
Discussion that followed included the possibility of Comcast upgrading services such as
phone, cable and Internet. Ms. Jenkins advised a-mail capabilities might have to be
transferred to Comcast's system; she also assured that the Town's Government Channel
19 and the County's Channel 20 would not be affected.
Only one member of the audience spoke. Pat Patrone, Seagate, said he was familiar
with Comcast Cable, and they are reliable, as well as give good service.
There being no further business to come before the Commission at this time, Mayor
Hagelmann adjourned the Public Hearing at 2:00 P.M. capon MOTION by
COMMISSIONER ZWICK/COMMISSIONER NEWILL.
dmt
~~'~\6N(,~~
a
z
~:~%:
DATE: July 5, 2005
TO:
FROM:
RE:
Office of the Town Manager
Interdepartmental Memo
Honorable Mayor and Members of the Town Commission
Dale S. Sugarman, Town Manager
Purchase and Sale of Adelphia Communications Corporation
("Adelphia Cable°) to Comcast Corporation ("Comcast Cable").
It has been well documented that Adelphia Cable is in bankruptcy, and they are
in the process of being bought out by Comcast Cable. Adelphia Cable is the
current cable operator in the Town of Highland Beach. The proposed buy-out is a
unique process in that it involves a convoluted transaction amongst Adelphia,
Time Wamer Cable and Comcast Cable. Comcast Cable is proposing that
Adelphia be acquired by Time Wamer Cable and then Comcast will acquire the
system from Time Warner. The two transactions are to be closed
contemporaneously. The reason for this type of closing has to do with the
structure of Time Wamer and its relationship to Comcast Cable. In the end,
Adelphia Cable will no longer exist, nor will Time Warner Cable as a supplier of
cable television. All of the cable television assets of these two entities will be
acquired by Comcast Cable. Adelphia Cable will dissolve as an entity and Time
Wamer will no longer be in the cable business. It will continue to operate its print
and broadcast media businesses, but will no longer serve cable television
subscribers.
Current Franchise Agreement
On March 1, 1996, the Town Commission adopted Ordinance No. 656 which
granted a ten (10) year cable television franchise to Southeast Florida Cable, Inc.
d/b/a Adelphia Cable. That franchise agreement will expire on March 1, 2006. On
August 26, 2003 Adelphia Cable sent the Town a Section 6261etter (the formal
notification letter under the 1984 Cable Communications Policy Act required to
initiate franchise renegotiation procedures with grantors), which indicated their
desire to begin the process of renegotiating a new franchise agreement. During
the week of April 5th, 2005 I advised Gwen Cogan, Director of Governmental and
Community Affairs for Adelphia Cable that the Town Commission had given me
authority to begin the negotiations process for renewal of the franchise
agreement. On April 12th, 2005, Ms. Cogan sent me a draft proposal for the
renewal of the franchise agreement. I was in the process of developing a
response to Ms. Cogan's draft agreement when we were advised of the signing
of an Asset Purchase Agreement between Adelphia/Time Warner/Comcast. That
brought our franchise renegotiations efforts to a halt.
Current Schedule of Events
Adelphia Cable has explained to us the following sequence of events:
May 25, 2005 The date that Comcast Cable submitted their required
FTC/FCC filings on the proposed purchase of the system.
June 4, 2005 The date that Adelphia filed their "Amended Plan for
Reorganization° and Disclosure Statement with the
Bankruptcy Court.
June 10, 2005 The date that Comcast Cable sent an FCC Form 394
Application packet to all franchise authorities. This is the
form the Town needs to complete to let the FCC know
that we desire to make comments on the arouosed
transfer from Adelahia thru Time Warner to Comcast.
July 21, 2005 The final day that franchise authorities have to file comments
i with the FCC with respect to Adelphia's Petition to Transfer
Cable Licenses. [Please note: I will be filing with the FCC
the necessary paperwork to advise them that the Town
of Highland Beach reserves the right to make comment
on the aroaosed transferl.
Sept. 10, 2005 Expiration date of the Initial Form 394 period for transfer.
September, 2005 Bankruptcy Court hearing on Disclosure Statement.
November, 2005 Bankruptcy Court "Confirmation Hearing".
December, 2005 Bankruptcy Court sets effective date for reorganization plan.
January, 2006 Proposed closing date of transaction.
Actions Needed by the Town of Highland Beach
1) The first action will be for me to send a letter to the FCC that the Town
desires to make comment on the proposed transfer. I will do that within
the next 10 days.
•
s 2) The Town will need to complete the FCC form 394 and submit it, with
comments to the FCC no later than September 10, 2005. Part of those
comments should include any issues that we have with the current
provider and/or the proposed provider. Those comments may include
topics such as:
a) A review and analysis of all reports and records that have been
submitted to the Town by the Franchisee.
b) An outline of any problems or deficiencies identified by the Town
during the term of the current Agreement.
c) An outline of any issues related to the cable system brought before
the Town Commission included, but not limited to, customer
service.
d) Comments on the design and capacity of the existing cable system
including, but not limited to, identification of products and benefits
available to subscribers on the system.
Please remember that the Cable Communications Act of 1984 took
away the ability of local governments to regulate the rates that are
charged by Cable TV companies. In essence, CATV rate regulation
has now become the domain of the Federal Government.
• In order to accomplish all of the above, it is my recommendation that the Town
Commission give consideration to calling for public hearings on the issue of how
to structure our response to the FCC regarding the transfer of the cable television
franchise from Adelphia Cable, through Time Warner Cable, to Comcast Cable.
That is, unless, the Town Commission feels that we really don't have any local
"issues" with the cable service that is offered in town (remember we cannot
regulate the rates).
I will put this item on the July 26th Town Commission workshop agenda to get
direction from the Commission on how you would like to proceed.
~~
Dale S. Sugerman
Town Manager
•
Minutes of Town Commission Public Hearing
August 2. 2005 Page 2 of 2
Approve:
•
Attest:
Rachael Scala-Pistone, Commissioner