HomeMy WebLinkAboutTCI Cablevision of Washington (1997-2001) L_- See K-.. chise Extension & ORD 4412 .
AGREEMENT BETWEEN TCI CABLEVISION OF WASHINGTON, INC. AND THE CITY OF
RENTON
EQUIPMENT INSTALLATION AND ADDITIONS
THIS AGREEMENT, authorized by Section II of the TCI Franchise Extension Agreement, is
entered into between the City of Renton, a Washington Municipal Corporation("City") and TCI
Cablevision of Washington, Inc., a Washington corporation("TCP').
Section II. Relocation of Video Equipment. TCI shall remove all video equipment and cameras
from the existing Renton Municipal Building at 200 Mill Avenue South and reinstall same in the new
Municipal Building located at Main Avenue S and Grady Way. Per separate mutual agreement, TCI and
the City shall reevaluate the existing inventory of video equipment and determine upgrades and additions to
be provided/installed by TCI concurrent with the relocation project. Time for performance: April, 1998.
I. Installation. All work shall be accomplished by or in consultation with JW Teltronics, the
contractor responsible for the original equipment installation. This will ensure compatibility and
consistency between existing and future installations. In addition, JW Teltronics shall perform all
maintenance and repair to the system. •
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II. New Patch Bay. (The following modifications have been identified to upgrade and expand
functionality of equipment.)
a. All cameras tied into patch bay(video outs).
b. All decks have SVHS and line video in and out
c. All decks have audio in and out
d. All decks have timecode in and out
e. All decks have serial control patches
f. Event controller has all necessary serial control patches
g. Editor has all necessary patches including serial control patches, SVHS and line video ins
and outs and audio ins and outs
h. Switcher has all necessary SVHS and line video ins and outs
i. Audio mixer has all ins and outs
j. Any other necessary patches that allow for all possible editing and programming
capabilities of all video and audio equipment
III. Deck Modification. Modify wiring of two existing SVHS edit decks to guarantee expanded use as
playback(programmable) decks.
IV. Provide A/B Edit Controller-Panasonic AG-A850
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V. Provide DVC Pro Deck-Panasonic AJ-D640
VI. Provide Color Monitor(9-inch) -NC TM-A9U
VII. Provide Field Recording Deck-Panasonic AG-750 SVHS
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VIII. Supply all cables and connectors needed for equipment installation and reconfiguration.
All provisions of Section V of the master amended franchise agreement shall be incorporated herein by
reference.
IN WITNESS WHEREOF, this agreement has been executed by each party on the date set forth below.
TCI CABLEVISION OF CITY OF RENTON
WASHINGTON, INC.
By Je Tanner, Mayor
Title
/1/, /� 7 l A5, /997
Date' Date
APPROVED TO FORM: ATTEST:
ompoateFfriat---/'
1140
jir'
Lawrence J. Warren, City Attorney Marilyn J. 't;Oen, City Clerk
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EXHIBIT B
ADDRESSES OF CITY LOCATIONS FOR FIBER OPTIC NETWORK
HUB: Renton Municipal Building Main Avenue S/Grady Way
LEG 1: Fire Station 14 1900 Lind Avenue SW
Grady Way Park&Ride Lot 205 S 7th Street
LEG 2: Fire Station 12 901 Harrington Avenue NE
Highlands Library 2902 NE 12th Street
N. Highlands Neighborhood Center 3000 NE 16th Street
Highlands Neighborhood Center 800 Edmonds Avenue NE
LEG 3: Renton Municipal Airport 616 W. Perimeter Road
Renton High School 400 S Second Street
Parks Maintenance Buildings 105/107 Williams Avenue N
Senior Center 211 Burneett Avenue N
Burnett Avenue Transit Center 219 Burnett Avenue S
City Attorney's Office 100 S Second
LEG 4: City Shops 3555 NE Second Street
Community Center 1715 Maple Valley Highway
LEG 5: • Fire Station 11 211 Mill Avenue S
Main Renton Library 100 Mill Avenue S
Liberty Park Community Building 1101 Bronson Way N
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F CHISE PROVISION EXTENSION
See ORD 4412)
AGREEMENT BETWEEN TCI CABLEVISION OF WASHINGTON,INC.
AND THE CITY OF RENTON
EXTENSION OF CERTAIN.FRANCHISE PROVISIONS
THIS AGREEMENT authorizing extension of certain franchise provisions is entered into
between the City of Renton, a Washington Municipal Corporation("City") and TCI Cablevision
of Washington, Inc., a Washington corporation("TCI").
RECITALS
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WHEREAS, TCI and the City entered into a franchise agreement, through Ordinance No.
4412, on August 9, 1993 (the"franchise"), which became effective on or about September 13,
1993, the commencement date of the franchise agreement; and
WHEREAS,TCI was obligated to perform certain obligations under the franchise or be
subject to penalties under Section 16 of the franchise; and
WHEREAS, because of changing technology and TCI's desire to provide a quality cable
television system for its Renton customers, TCI has been unable to complete the following.
franchise obligations by September 13, 1997, or sooner, the time allowed for performance of
these provisions under the franchise:
(A) Under Section 5, complete upgrade of City system to 54 channels that has the
capability of implementing certain enhanced services; and
(B) Under Section 5, provide, maintain, and operate a public access studio within a
radius of eight miles of Renton City Hall; and
(C) Under Section 8, provide an interactive system with capability for institutional
networks for educational and public safety communications; and
(D) Under Section 7, maintain necessary equipment for local government cablecasting.
WHEREAS, TCI has requested an extension of time from the City to meet these
obligations and to provide these and other improved services to its customers; and
WHEREAS, the City has agreed to extend the time for performance of these conditions
under the franchise on the condition that TCI provide the City additional in-kind consideration in
the form of certain separate, dedicated, fiber optic lines for the City's sole use as described in
further detail in this Agreement and in the attached Exhibit A; relocate video equipment to the
new Municipal Building; extend cable service to certain City facilities as identified in Exhibit B;
and commence annual video equipment maintenance expense reimbursement.
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NOW, THEREFORE, the parties agree as follows:
AGREEMENT
TCI to Provide Separate Fiber Lines. TCI agrees to provide a separate fiber optic cable to
be separately hung or attached to TCI systems, all connected to a hub at the Renton
Municipal Building, located at Main Avenue South and Grady Way, to the following City
locations(described in Exhibit B):
Leg 1,: Fire Station 14; Grady Way Park and Ride Lot
Leg 2: Fire Station 12;Highlands Library;North Highlands Neighborhood Center;
Highlands Neighborhood Center
Leg 3: Renton Municipal Airport;Renton High School;Parks Maintenance Buildings;
Senior Center;Burnett Avenue Transit Center; City Attorney's Office
Leg 4: City Shops; Community Center
Leg 5: Fire Station 11;Main Renton Library;Liberty Park Community Building
A. Specifications. Each of these fiber optic lines shall be at least twelve-strand fiber,
meeting the minimum specifications attached in Exhibit A. Additionally, if the fiber line
running from the Municipal Building hub is routed through one City facility to connect to
another, TCI shall provide sufficient fiber strands to meet a minimum twelve-strand fiber
run to each individual facility. Where available and where capacity exists, TCI is
authorized to utilize City-owned underground conduit.
TCI shall follow industry standard practices for quality installation based on BICSI
standards. The City reserves the right to perform random quality inspections to assure
conformance to such standards.
B. Maintenance. The City shall be responsible for the ongoing maintenance of this
fiber optic system. However, throughout the term of TCI's existing franchise with the
City, TCI shall, at the City's request, perform requested maintenance to the City's fiber
system on a time-and-materials basis. TCI shall only perform this maintenance if first
requested by the City; however, in emergency conditions, such as natural emergency
resulting from a windstorm, TCI is authorized, when conducting its own emergency work,
to effect similar emergency repair work on the City's system, and the City will reimburse
TCI for its expenses, based on time and materials, to conduct these repairs to the City's
system.
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C. City to Provide Electronics. TCI is responsible for supplying and installing the
specified fiber to the specified locations only. All electronics required to put the system in
operation shall be at the City's sole expense.
D. Time for Performance. TCI agrees to comply with all of its original obligations
under the Franchise Ordinance and with the obligations of Item#1 this Agreement no later
than September 13, 1999.
II. Relocation of Video Equipment. TCI shall remove all video equipment and cameras from
the existing Renton Municipal Building at 200 Mill Avenue South and reinstall same in the
new Municipal Building located at Main Avenue S. and Grady Way. Per separate mutual
agreement, TCI and the City shall reevaluate the existing inventory of video equipment
and determine upgrades and additions to be provided/installed.by:TCI concurrent with the
relocation project.
Time for Performance: April, 1998.
III. Extension of Cable Service. TCI shall extend cable service to the new Municipal Building
prior to occupancy in 1998, and to the Renton Community Center/Carco Theater,
downtown Library,Highlands Library, and Fire Station 14 (described in Exhibit B). TCI
shall provide assistance in prewiring new Renton Municipal Building for cable service.
Time for Performance: April, 1998.
IV. Maintenance of Video Equipment. Per Section 7 of Ordinance No. 4412, TCI agrees to
pay an annual amount of$1500 towards maintenance of video equipment, payable on
January 31 of each year, commencing January 31, 1998; and retroactive payment of$2500
due by December 31, 1997, to compensate the City for maintenance costs incurred from
1995 through 1997.
Time for Performance: December 31, 1997; January 31 annually thereafter.
V. Failure to Comply. If TCI fails to comply with its obligations for Item#1 under this
Agreement by September 13, 1999, or by the time for performance established in Items#2
through#4, then TCI shall be in breach of this Agreement and of the franchise provisions
described above. Without waiving its right to make any claims it may have for other areas
of default under the franchise, the City shall have the right to reinstitute all penalties
available to the City under the franchise backdated to September 13, 1997. TCI
acknowledges that these penalties amount to no less than $200 per day for each day of
each violation until the date TCI reaches compliance on each violation. Additionally,
TCI's failure to provide the fiber optic line specified in this Agreement to any of the
locations listed above shall constitute a separate instance of default, subject to penalties of
up to $200 per day for each instance of default.
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VI. Not External Cost. TCI acknowledges that its original obligations under the franchise and
this Agreement constitute expected costs, or impacts from expected costs, incurred at the
time TCI entered into its franchise with the City. Accordingly, TCI shall not separately
itemize and pass through any of the cost associated with complying with this Agreement
to City customers as an external cost.
IN WITNESS WHEREOF, this Agreement has been executed by each party on the date set forth
below.
TCI CABLEVISION OF CITY OF RENTON
WASHINGTON, INC.
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644-e- c7.04A-4,64A-0,
By Je Tanner
•
- 2Cr�&
Title Mayor
/ /57rtetee.haA€41(R3, 1997
Date Date
APPROVED AS TO FORM ATTEST
/444'11.01--j.
#FP/
Lawrence J. Warren, City A ttorney Marilyn J. Pet;r -n, City Clerk
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EXHIBIT A
OUTDOOR FIBER SPECIFICATION
A totally non-metallic(Dielectric)gel-filled fiber optic"loose tube" cable for all outdoor
routes. The cable purchased for these projects shall be capable of supporting high
bandwidth applications, including FDDI and CATV. The fiber should meet or exceed the
following specifications:
A. Attenuation: @1310 nm- 0.40 db/km
@1550nm- 0.30db/km
B. Tensile load rating: 600 lbs.
C. Core diameter: 8.3 urn
D. Clad diameter: 125.0+/- 1 um
E. Coating diameter: 250.0+/- 15 um
F. Sheath: High Density Polyethylene
G. Bending radius: 20 times cable diameter recommended
10 times cable diameter minimum bend radius
H. Standards: Bellcore&EIA/TIA
{
CITY OF RENTON, WASHINGTON
ORDINANCE NO. 4412
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING
TO TCI SEATTLE, INC.. A FRANCHISE TO OPERATE A CABLE
COMMUNICATION SYSTEM WITHIN THE CITY OF RENTON.
Table of Contents:
Section
1 . Purpose
2 . Length of Franchise
3 . Service Area
4 . Franchise Fee
5 . Future Provisions
6 . Access Channels
7 . Government Access Equipment
8 . Institutional Networks
9 . Emergency Override
10 . Emergency Power
11 . Coverage
12 . Cable Availability
13 . Extraordinary Installation
14 . Distribution Line Extension Charges
15 . Public Buildings
16 . Penalties
17 . Independent Contractors
18 . Entire Agreement
19 . Successors or Assigns
20 . Acceptance
21 . Effective Date
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ORDINANCE NO. 4412
22 . Notice
Appendix "A" Access Studio and Equipment
Appendix "B" Building Locations
Appendix "C" Public Schools
Appendix "D" Programming Survey
Section 1: Purpose.
This Franchise shall constitute an agreement between the City of
Renton (hereinafter the "City" ) and TCI Seattle, Inc . (hereinafter
the "Operator" ) . The Operator promises to construct, maintain, and
operate a cable television system for the distribution of television
and other electronic signals pursuant to the terms of this
Franchise. The City agrees to grant the Operator all necessary
rights and privileges to use public rights of way necessary for a
cable television system. This agreement shall, as of its effective
date, supersede and replace all existing franchises previously
granted by the City of Renton to the Operator or any of its
predecessors, subsidiaries or affiliated companies .
Section 2: Length of Franchise.
The length of this Franchise shall be for a term of fifteen
(15) years from September 13, 1993 through midnight
September .1.3, 2008.
Section 3: Service Area.
The Operator' s service area shall be the entire incorporated
area of the City of Renton., in its present incorporated form or in
any later reorganized, consolidated, enlarged, or re-incorporated •
form.
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ORDINANCE NO. 4412
Section 4: Franchise Fee.
Recognizing that current Federal law limits a franchise fee to
five percent (5%) , the Operator shall pay to the City quarterly, on
or before the thirtieth (30th) day of each January, April, July and
October, a sum equal to five percent (5%) of gross revenues, for
the preceding three calendar months, as defined in Ordinance
4413 Revenues that are derived as a portion of a national
or regional service shall be computed on a per subscriber basis if
such determination cannot be achieved by other means .
The City may raise the franchise fee, if so permitted by
Federal and State law. Prior to implementation of any increase in
franchise fees the Operator may request a public hearing by the
City Council to discuss said increases . Following such a hearing
the City Council may require the implementation of such increase in
accordance with the provisions of this Ordinance.
(a) Late Payment. Any quarterly franchise fee not paid by
the Operator within thirty (30) days of the end of a quarter shall
bear interest at the rate of twelve percent (12%) , per annum or
whatever maximum amount is allowed under State law, whichever is
greater, from the due date until paid.
(b) Financial Reports. Each franchise fee payment shall be
accompanied by a financial report on a form provided by the City
showing the basis for the Operator' s computation separately
indicating revenues received by the Operator within the City from
basic service, pay TV service, other applicable sources of revenue,
and such other information directly related to confirming the
amount of the Operator' s gross revenues as may be reasonably
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ORDINANCE NO. 4412
required by the City.
(c) Audit by City. The City shall have the right, upon
reasonable notice or no less than two (2 ) working days, to
inspect the books and records of the Operator during normal
business hours, for the purpose of ascertaining the actual gross
revenues collected by the Operator. In the event that such audit
discloses a discrepancy of more than ten percent ( 10%) between
the financial report submitted by the Operator with a quarterly
payment and the actual gross revenues collected by the Operator,
the Operator agrees to pay to the City the costs of such audit.
In the event that such audit results in a determination that
additional franchise fees are due the City, the Operator further
agrees to pay interest as required for late payment on such
additional franchise fees computed from the date on which such
additional franchise fees were due and payable.
(d) Non-waiver. Acceptance of any franchise fee payment by the
City shall not be construed as an agreement by the City that the
franchise fee paid is in fact the correct amount, nor shall
acceptance of payment by the City be construed as a release or
waiver of any claim the City may have for further or additional
sums payable under the provisions of this Ordinance.
(e) Taxes . Nothing in this section shall limit the Operator' s
obligation to pay applicable local, State, or Federal taxes .
Section 5: Future Provisions.
The City and the Operator acknowledge that the former should
be provided with a cable system that has the same general
capabilities and capacity as those provided other cities . served by
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ORDINANCE NO. 4412
the Operator in the King-Pierce-Snohomish County area of the State
of Washington. The City may, at its discretion, require that the
Operator provide such interactive services as addressability,
security, computer interaction, banking, shopping, voice and data
transmission, High Definition Television (HDTV) , fiber optic and
other such features, as well as upgrades capable of carrying at
least fifty-four (54) channels, within the City within twenty-four
(24) months of any of the following occurrences :
Provision by the Operator of any of the same services
identified above to a preponderance of a system;
(a) Within the City of Seattle system, or;
(b) Within any adjacent community, or;
(c) Forty percent (40%) of the municipalities in the King,
Pierce, and Snohomish Counties .
Notwithstanding the above, the Operator shall in any event
complete the upgrade to fifty-four (54) channels and have the
capability of implementing these enhanced services within forty-
eight (48) months from the effective date of this franchise.
Prior to implementation of any such service the Operator may
request a public hearing by the City Council, to discuss the
benefits of said features to the citizens of the City. Upon a
finding by the City Council that such features are reasonably
required to meet community needs, taking into consideration the
expense of providing such services and the potential costs, to
subscribers, the City Council may require the implementation of
such features in accord with the provisions of this agreement. If
the Council deem it necessary, it may, at its own option by a
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ORDINANCE NO. 4412
majority vote, extend the time requirements established in this
section.
Additionally, the Operator, upon completion of the upgrade or
by the expiration of the forty-eight (48) month period as
prescribed herein, shall provide, maintain and operate a public
access studio within a radius of eight (8) miles of the City Hall,
or at a location mutually agreeable by all parties . Such
facilities shall be subject to approval by the City as suitable.
Such approval shall not be unreasonably withheld.
Section 6: Access Channels.
Upon completion of the upgrade conditions the City shall be
provided with three (3) access channels including the government
channel already in use, one of which shall be capable of
broadcasting live from City Hall. The City may initially share a
common public access channel with other communities, however, the
City may elect, at its option, to provide programming over an
individual public access channel for the City' s sole use.
Additional channels over and above these shall be made
available for City purposes when any of the three (3) designated
channels is in use for access purposes with programming during
fifty percent (50%) of the hours between 10 : 00 a.m. and 10 : 00 p.m. ,
during any consecutive ten (10) week period. The Operator shall,
within six ( 6) months following a request by the City, subject to
the restrictions above, provide another designated access channel
for this purpose.
The Operator shall continue to provide additional channels
under the same conditions . Programming on additional channels
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ORDINANCE NO. 4412
shall be distinct and non-repetitive of the previous channel. If
additional channels are designated for community use, but, after
one year, such channel(s) are not utilized at least twenty-five
percent (25%) of the hours between 10 : 00 a.m. and 10 : 00 p.m. with
programming, the access users will, within six ( 6) months of
receiving written notice from the Operator, group their programming
into one contiguous block of time of their choosing. The remaining
broadcast time on such channel shall then revert to the Operator
for its unrestricted use within the terms and conditions of this
ordinance.
Contributions to PEG access will not be considered in lieu of a
franchise fee nor other obligations to the City.
Section 7 : Government Access Equipment.
The Operator shall provide, maintain, and install the
necessary equipment for local government cablecasting within six
( 6) months of a request of the City unless extended by mutual
written agreement. Such equipment shall not be less in quantity
nor equivalent quality than those listed in Appendix A.
Section 8: Institutional Networks.
Upon completion of the cable system upgrade the Operator' s
system shall have the capability of bi-directional Institutional
Networks for educational and public safety communications . An
entity desiring activation of such feature(s) will provide the City
Council demonstrated need of such use.
Prior to implementation of any such service the Operator may
request a public hearing by the City Council, to discuss the
benefits of said features to the citizens of the City. Upon a
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ORDINANCE NO. 4412
finding by the City Council that such features are reasonably
required to meet community needs, taking into consideration the
expense of providing such services and the potential costs to
subscribers, the City Council may require the implementation of
such features in accord with the provisions of this agreement.
Section 9: Emergency Override.
Upon completion of the system upgrade subject to the
conditions of Section 5, Future Provisions the Operator shall make
provisions for an emergency alert system. The Operator shall
establish a process which will provide a character generated scroll
and make the best effort to furnish a voice override notifying
viewers and listeners of the emergency. Subject to Federal and
State laws and regional planning authorities, control of these
emergency override facilities shall be the responsibility of the
City. The City shall hold a franchisee, its agents, employees,
officers, and assigns harmless from any claims arising out of the
emergency use of its transmitting facilities by the City. The
City, at its option may elect to share this service with adjoining
communities .
Section 10: Emergency Power.
A franchisee shall provide a standby power system to
automatically activate equipment at the headend and hubs., if
applicable, in event of a primary electrical failure.
Section 11: Coverage.
The City shall be provided with cable television service in the
entire Franchise area. If such a condition does not now exist, the
Operator shall complete such wiring and be in a position to offer
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ORDINANCE NO. 4412
cable reception to all residents within twelve ( 12 ) months from the
grant of the Franchise. Areas subsequently annexed shall be
provided with cable availability within twelve ( 12 ) months, subject
to the terms in Section 13 Extraordinary Installation.
Section 12: Cable Availability.
Cable service shall not be denied to any group of potential
residential cable subscribers because of the income of the residents
of the local area in which such group resides .
Section 13 : Extraordinary Installation.
All residents requesting cable service and living within one
hundred fifty ( 150) feet of existing cable distribution lines shall
have the cable installed at the prevailing published installation
rate.
In the event a request is made for service and the residence is
more than one hundred fifty ( 150) feet from an existing cable
distribution line, such installation shall be completed on a time
and material cost basis for that portion of the service line
extending beyond one hundred fifty ( 150) feet.
Section 14: Distribution Line Extension Charges.
Cable Service shall be available to all residents within the
City provided there are at least thirty five (35) dwelling units
per street mile.
In the event a request is made for service by a resident(s)
living in an area not meeting such criteria, the Operator shall
enter into a contractual agreement with the resident(s) requesting
service wherein the Operator shall be reimbursed for its
construction costs . Whenever any subsequent subscriber who did not
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ORDINANCE NO. 4412
contribute to the original cost of the extension connects to the
extended distribution service line, that subscriber shall pay
his/her pro rata share directly to the Operator prior to obtaining
cable service. The Operator shall then promptly tender such
payment to the original subscriber so long as the agreement remains
in force.
Reimbursement shall be calculated on a front foot basis as a
percentage of the total cost of the service line extension.
Reimbursements shall be made to the original subscriber for a
period of up to five (5) years or to the point when the Operator
has recovered its incremental costs to construct the distribution
service line.
The Operator may, at its option, record its contractual
agreement with the original subscriber in the office of the King
County Recorder prior to the time any subsequent subscriber
connects to the extended service line.
Section 15: Public Buildings.
The Operator shall provide without charge for installation or
monthly rate, basic service, one outlet, and converter, if needed
at such public buildings and schools as specified in Appendix "B"
and "C" as well as other such buildings that may be constructed
during the period of the Franchise that are passed by cable and
within one hundred fifty 150 feet of the trunk or distribution
system.
Section 16: Penalties.
The City shall notify the Operator in writing stating the
nature of a perceived deficiency in the operation of the cable
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ORDINANCE NO. 4412
system and setting forth the time the Operator will be allowed to
rectify such alleged improper condition. The Operator may request
an extension of time if construction is suspended or delayed by the
City, or where unusual weather, acts of God (e.g. earthquakes,
floods, etc. ) , extraordinary acts of third parties, or other
circumstances which are reasonably , beyond the control of the
Operator, delay progress provided that the Operator has not,
through its own actions or inactions, substantially contributed to
the delay. The amount of time allowed will be reasonably
determined by the City and the Operator. The extension of time in
any case shall not be less than the extent of the actual non-
contributory delay experienced by the Operator.
Failure of the Operator to correct these deficiencies, except
in those circumstances cited above, may result in the City calling
a hearing to determine if penalties should be imposed upon the
Operator or if a material violation of the franchise has occurred.
If, following such hearing, it is determined by the City
Council that the Operator has failed to comply with the schedule
set forth in the Franchise, monetary penalties will be imposed as
set forth below for each day beyond thirty (30) days that the
Operator has not fulfilled the requirement(s) :
a. Upgrade improvements and regional P.E .G. facilities required
by Section 5 Future Provisions, two hundred dollars ($200 . 00)
per day.
b. Equipment and channels committed by the Operator to the City
for access purposes . Sections 6 Access Channels; 7 Government
Access Equipment; and 8 Institutional Networks, two hundred
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ORDINANCE NO. 4412
dollars ( $200 . 00) per day.
c. Coverage of annexed areas where such is not completed as
required by Section 11 Coverage, two hundred dollars ( $200 .00)
per day.
Monetary penalties may be assessed retroactive to the date
that notification was provided to the Operator in such cases where
the Operator has been non-responsive in correcting the situation or
in the case of flagrant violations .
Termination of the Franchise pursuant to the procedure
outlined in Ordinance No. 4413 may be imposed for any violation of
one or more of the above listed items . The Operator and the City
agree that any of the above described violations, unless excused,
or not corrected by the Operator within the time allotted, shall
constitute failure to comply with a material provision of the
Franchise.
No penalty, bond, forfeiture, or termination shall be imposed
for delays where such delays are the result of causes beyond the
reasonable control and/or without substantial fault or negligence
of the Operator, as reasonably determined by the City. If payment
of any of these penalties is delinquent by three (3) months or
more, the City may require partial or total forfeiture of
performance bond or other surety.
Section 17 : Independent Contractors.
This agreement shall not be construed. to provide that the
Operator is the agent or legal representative of the City for any
purpose whatsoever. The Operator is not granted any express or
implied right or authority to assume or create any obligation or
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ORDINANCE NO. 4412
responsibility on behalf of or in the name of the City or to bind
the City in any manner or thing whatsoever.
Section 18: Entire Agreement.
This agreement, including the Master Cable Ordinance and
exhibits that are attached hereto and incorporated herein by
reference represents all of the covenants, promises, agreements,
and conditions, both oral and written, between the parties .
However, the City reserves the right to waive any of these sections
without affecting the applicability of other sections not so
specifically waived. Waiver of any Franchise requirement or
Ordinance sections by the City shall be in writing in order to be
effective.
Section 19: Successors or Assigns.
This Franchise Agreement, including all addenda, and the
City' s Master Cable Ordinance shall be binding to the Operator, its
heirs, successors, and assigns .
Section 20: Acceptance.
This grant of Franchise and its terms and provisions shall be
accepted by the Operator by the submission of a written instrument,
executed and sworn to by a corporate officer of the Operator before
a Notary Public, and filed with the City Clerk within sixty (60)
days after the effective date of this Franchise. Such instrument
shall evidence the unconditional acceptance of this Franchise and
the promise to comply with and abide by all its provisions, terms
and conditions .
Section 21: Effective Date.
This Ordinance shall take effect five (5) days from and after
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ORDINANCE NO. 4412
its passage and publication, provided, however, the Franchise
granted by this Ordinance shall not become effective until the
Operator files written acceptance thereof.
Section 22: Notice.
Written notices shall be deemed to have been duly served if
delivered in person to the individual or entity for whom it was
intended, or if delivered at or sent by registered or certified
United States mail to the last business address known to the party
who gives the notice.
All notices and requests shall be addressed to the City of
Renton and the Operator as follows :
CITY: City Clerk
City of Renton
200 Mill Avenue South
Renton, WA 98055
OPERATOR: TCI Seattle, Inc.
15241 Pacific Highway South
Seattle, WA 98188
ADDITIONAL NOTICE: TCI Seattle, Inc.
Attn: Legal Department
P.O. Box 5630
Terminal Annex
Denver, CO 80217
SECTION II. This Ordinance shall be effective upon its
passage, approval, and thirty days after its publication.
PASSED BY THE CITY COUNCIL this 9th day of August ,
1993 .
4 _ore ,
Marilyn J/ Pe ersen, City Clerk
14
ORDINANCE NO. 4412
APPROVED BY THE MAYOR this 9th day of August , 1993 .
Earl Clymer, i ayor
Approved as to form:
QMt 'ice
Law4e . Warre City Attorney
Date of Publication: August 16, 1993
ORD. 303 :4/23/93:as .
15
Access Equipment APPENDIX A
In accordance with Section 7 Government Access Equipment the
following equipment or its equivalent will be supplied by the
Operator.
Quantity Description of Item
1 Texscan MSI—SG 4-B Character Generator
3 Panasonic CCD Two-Color Chip Cameras
3 Telco Remote Camera Control Systems
1 Amega 3000 Computer System with Omni Link and
Video Toaster
2 Panasonic AG 8350 SVHS 1/2" Recording Decks
1 Shure Audio Microphone System
10 Lavalier Microphones
3 12" Color Monitors
1 19" Color Monitor
2 Panasonic AG460 1/2" SVHS Cameras
2 LTM 4 Pepper 420 Light Kits (with accessories)
2 Bogen 3062 Video Tripods (w/3066 fluid head)
2 Tripod Adaptors
20 1/2" 20 Minute Video Cassettes
20 1/2" 30 Minute Video Cassettes
20 1/2" 60 Minute Video Cassettes
Miscellaneous lighting system as required to
adequately allow for the video taping and
broadcast of City meetings in the existing City
Council Chambers
Miscellaneous cable as required to complete the
wiring of the existing City Council Chambers .
Renton Public Buildings APPENDIX B
CARCO THEATER BLDG.
1717 Maple Valley Hwy.
Renton, WA 98055
CITY HALL
200 Mill Avenue South
Renton, WA 98055
CITY SHOPS
3555 NE 2nd St.
Renton, WA 98055
COMMUNITY CENTER
805 Union Avenue N. E.
Renton, WA 98055
FIRE STATION # 11
211 Mill Avenue South
Renton, WA 98055
FIRE STATION #12
W/S Harrington Ave N. E.
& NWC of 9th N
Renton, Wa 98055
FIRE STATION #13
17040 108th Avenue S. E.
Renton, WA 98055
FIRE STATION #16
12923 156th Avenue S .E.
rENTON, wa 98055
HIGHLANDS LIBRARY
2902 N. E. 12th St.
Renton, WA 98055
HIGHLANDS NEIGHBORHOOD CENTER
OFFICE, GYM & WATER DEPT.
800 Edmonds Avenue N. E.
Renton, WA 98055
HISTORICAL MUSEUM
235 Mills Avenue South
Renton, WA 98055
LIBERTY PARK CON. BLDG
1101 Bronson Way North
Renton, WA 98055
17 05/25/93
MAIN LIBRARY
535 Bronson Way
Renton, WA 98055
MAPLEWOOD GOLF COURSE
CLUB HOUSE & RESTAURANT
4000 Maple Valley Highway
Renton, WA 98055
NO. HIGHLAND NEIGHBORHOOD CENTER
N. E. 16th & Jefferson N. E .
Renton, WA 98055
PHILLIP ARNOLD PARK REC. BLDG.
S. 7th At Arnold Park
Renton, WA 98055
POLICE/CITY HALL ANNEX
1010 S. 2nd St
Renton, WA 98055
RENTON COMMUNITY CENTER
1715 Maple Valley Highway
Renton, WA 98055
RENTON POLICE RADIO BLDG.
3310 N. E. 10th Street
Renton, WA 98055
SENIOR CITIZEN BLDG.
211 Burnett Avenue North
Renton, WA 98055
THE HOLM BUILDING
230 Main Avenue South
Renton, WA 98055
THOMAS TEASDALE PARK
ACTIVITY CENTER
William Avenue St. 98th S.
Renton, WA 98055
WINDSOR HILL PARK
RECREATION BLDG.
420 Windson Way N. E.
Renton, WA 98055
18 05/25/93
Renton Schools APPENDIX C
BENSON HILL ELEMENTARY
18665 116th Ave. S . E
Renton, WA 98058
CASCADE ELEMENTARY
16022 116th Ave. S. E.
Renton, WA 98055
HAZEN HIGH SCHOOL
1101 Hoquiam Ave N.E.
Renton, WA 98056
HIGHLANDS ELEMENTARY
2727 N. E. 9th Street
Renton, WA 98056
KENNYDALE ELEMENTARY
1700 N. E. 28th Street
Renton, WA 98056
LINDBERG HIGH SCHOOL
16426 128th Ave. S. E.
Renton, WA 98058
MCKNIGHT MIDDLE SCHOOL
2600 N. E. 12th Street
Renton, WA 98056
NELSON MIDDLE SCHOOL
2403 Jones Ave. So
Renton, WA 98055
MAPLEWOOD HEIGHTS ELEMENTARY
13430 144th Ave. S. E.
Renton, WA 98056
RENTON AREA YOUTH SERVICES
1025 So Third Ave
Renton, WA 98055
RENTON HIGH SCHOOL
400 So. 2nd Street
Renton, WA 98055
RENTON PARK ELEMENTARY
16828 128th Ave. S . E.
Renton, WA 98058
19 04/26/93
RENTON SCHOOL DISTRICT NO 403
Administrative Center
435 Main Ave. So.
Renton, WA 98055
SIERRA HEIGHTS ELEMENTARY
9901 132th Ave S .E.
Renton, WA 98056
SPECIAL EDUCATION- HILLCREST
Special Prog/Multicultural
1800 Index Ave N. E.
Renton, WA 98056
SPRING GLEN ELEMENTARY
2607 Jones Avenue So.
Renton, WA 98055
TALBOT HILL ELEMENTARY
2300 Talbot Road So.
Renton, WA 98055
TIFFANY PARK ELEMENTARY
1601 Lake Youngs Way S. E.
Renton, WA 98058
VTI/BUSINESS TECHNOLOGY CNTR.
800 Union Ave N.E.
Renton, WA 98056
VTI/SARTORI PROGRAMS
315 Garden Ave No.
Renton, WA 98055
20 04/26/93
r
4 -
PROGRAMMING SURVEY Appendix D
Results of Random Sampling of 1000 Residences
8/10/90
% Responding Interest as
Type of Programming. Very High or Somewhat High
News 93%
Old Movies 82%
Adult Education 78%
Health 78%
Consumer Information 77%
Weather 76%
Sports 74%
Business 64%
Fine Arts 59%
Video Music 59%
Children' s Programs 52%
Country 52%
U. S . Congress Proceedings 51%
Local Bulletin Board 45%
Senior Citizens 41%
Local Advertisement 37%
Religious 24%
Spanish Language 9%
21 04/26/93
M
) 7 7 icA
CITY OF RENTON, WASHINGTON
RESOLUTION NO. 3 49 2
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON,
CONFIRMING FULFILLMENT OF THE FRANCHISE OBLIGATION OF
TCI CABLEVISION OF WASHINGTON, INC., KNOWN AS AT&T
BROADBAND, TO PROVIDE, OPERATE, AND MAINTAIN A PUBLIC
ACCESS FACILITY.
WHEREAS, under Section 5 of its Franchise Agreement with the City of Renton, TCI
Cablevision of Washington, Inc., known as AT&T Broadband ("AT&T"), assumed an obligation
to provide, maintain, and operate a public access studio for the City during the life of its franchise;
and
WHEREAS, AT&T has assumed this same franchise obligation with the cities of Auburn,
Burien, Kent, Renton, SeaTac, and Tukwila(collectively"Cities"); and
WHEREAS, AT&T has reached an agreement with the Cities to fulfill the franchise
obligation described herein by a one-time payment of $3,701,942.78 (the "Access Funds") to
Puget Sound Access ("PSA"), a Washington non-profit corporation; and
WHEREAS, the Access Funds will be used solely for the purpose of constructing,
equipping, operating and maintaining a public access studio and administering the functions of the
public access channel(s) provided by AT&T for the use and benefit of the Cities; and
WHEREAS,the Access Funds will be held in a Designated Fund; and
WHEREAS, the Cities agree that the payment of Access Funds to PSA fully and
unconditionally fulfills AT&T's franchise obligation to provide, maintain, and operate a public
access studio:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON.
WASHINGTON, DOES RESOLVE AS FOLLOWS:
1
RESOLUTION NO. 3 49 2
SECTION I. The above recitals are found to be true and correct in all respects.
SECTION II. In consideration of the total payment of$3,701,942.78 to PSA by
AT&T, the City of Renton confirms that AT&T's obligation to "provide; maintain, and operate" a
public access studio in the City of Renton pursuant to Section 5 of Ordinance No. 4412 is, in all
respects, completely fulfilled, and AT&T is, accordingly, fully released from all public access
facility, maintenance and operation requirements under its current Franchise Agreement with the
City.
SECTION III. Severability. If any section, subsection, paragraph, sentence,
clause, or phrase of this resolution is declared unconstitutional or invalid for any reason, such
decision shall not affect the validity of the remaining portions of this resolution.
SECTION IV. Ratification. Any act consistent with the authority and prior to the
effective date of this resolution is hereby ratified and affirmed.
SECTION V. This resolution shall take effect and be in force immediately upon
its passage.
PASSED BY THE CITY COUNCIL this 12th day of March , 2001.
Marilyn . P rsen, City Clerk
APPROVED BY THE MAYOR this 12th day of March , 2001.
d
J Tanner, Mayor
RESOLUTION NO. 3492
Approved o form:
avv-6421409Plit24112-t/
Lawrence J. Warren, City Attorney
RES.835:2/23/01:ma
3
CO
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— Channel
28
Mayor i
Viewer s
Q - ,[LS Jesse Tanner ,_ •,,
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We want to know how we're doing!
W Renton City Council
c.0 o 0) _ Bob Edwards, President RCN Channel 28 is the City of Renton's
co Q cable television channel. It is dedicated to
U a, Z } LL Dan Clawson government programming 24 hours a day and
WH o o ZD uco) Randy Corman combines coverage of local government
W a N I— W Kathy Keolker-Wheeler meetings, community events, a quarterly
fY w R W > " Toni Nelson magazine that highlights city services and
u) Li, m w lY programs, and a bi-monthly land use update
Z King Parker
J 0 0 J as well as an information readerboard.
IJJ U ® g 0 Tim Schlitzer
- g 0 c It
Please help us plan future programming for
F/5 < U U N 0= this channel by completing a short Si `y.
03Q aY
m U U� Pre-paid postage has been supplied for you.
u) m ♦ �° ♦ Simply re-fold and tape as indicated on the
�_ reverse side and return via mailbox.
11 b �. Nom®)set
Or, drop off the survey at one
i of the following convenient locations:
�o City of Renton
®� P �� a 200 Mill Avenue South • Main Library, 100 Mill Avenue South
\ 0 • Highlands Library, 2902 NE 12th Street
\`� .d Renton, WA •98055 • Renton Community Center, 1715 Maple Valley Hwy.
� z w
c, it RCTV Channel 28 Contact: Thank you for your input.
10 � R Marilyn Petersen, City Clerk
(425) 235-2502 We value your opinions!
0 Printed on recycled paper; 20% Post Consumer content
1 4
F:?7,_.„ Have you ever watched , .-, If you do not watch RCTV IDo you think Channel 28
it Channel 28? ?; Channel 28 , how do you ;, adds to your awareness
11 ❑ No li obtain information about 1 and understanding of
❑ Yes, occasionally 110
lthe City of Renton? {{; city/community issues?
iS❑ Yesregularly (once a week or more) Renton Reporter ,i ❑ Yes
ll ❑2South County Journal `;1 ❑ No
1E ❑ Web Site (www.ci.renton.wa.us)
What do you watch? ! ❑ Other Newspaper
(check all that apply) t ❑ Utility bill inserts What else do you want
❑ City Council meetings i ❑ Neighborhood meetings F'' to see on Channel 28?
1
❑ Puget Sound Regional Council ,j ❑ Quarterly Recreation Brochure Check all that apply.
❑ Community events (concerts, ! ❑ Other ❑ A live, call-in show with city officials
i variety shows, plays)
❑ Coverage of other Renton boards
if ❑ CityView (the City's quarterly and commissions
!/ magazine program) Please indicate any :; ❑ Coverage of State Legislature and/or
i, ❑ Land Use Update i _ : topics you want added to King County Council meetings
rI 1i the readerboard.1 ❑ TV-Washington ❑ More documentary-style ro rams
il ❑ Environmental programs 1,. : about Renton topics
it ❑ Disaster/Emergency Preparedness , LI More arts programming
i'l ❑ Health/Welfare Issues 11 { ❑ Other
li
❑ Other: ' is ❑ Expanded coverage of community
,
i 1 i. events (please give examples below)
i;
Do you use the
°' .:.. information readerboard
U to access information What is your best source .
1 about Council meetin
;i g µ.; for finding out what' s We appreciate you taking the time to respond to
1 agendas , job openings , il on Channel 28? this survey. Please use the space below to
senior activities , make further comments about Channel 28.
rl construction bid open— ` ❑ Web site (www.ci.renton.wa.us)
ings , street closures ; CI Renton Reporter
9 community events , etc . i9 ❑ Schedules shown on Channel 28
ii 11 at the top of the every hour
i ❑ Yes ,,I ❑ Utility bill inserts
0 No 9; 0 Channel surfing
Cabit
AFFIDAVIT OF PUBLICATION
Charlotte Ann Kassens, first duly sworn on oath states that he/she is the Legal Clerk of the
' SOUTH COUNTY JOURNAL
600 S. Washington Avenue, Kent, Washington 98032
a daily newspaper published seven (7)times a week. Said newspaper is a legal
newspaper of general publication and is now and has been for more than six months .
prior to the date of publication, referred to, printed and published in the English languageCITYof RENTON a
continually as a daily newspaper in Kent, King County, Washington. The South County PROPOSED BASIC CABLE RATES
_ Journal has been approved as a legal newspaper by order of the Superior Court of the The City of-Rehtdri is in the process of 1
1
reviewing rates charged by AT&T Cable
State of Washington for King County. Services to its subscribers for basic cable
The notice in the exact form attached,was published in the South County service. The FCC has'established guide-
Journal (and not in supplemental form)which was regularly distributed to the subscribers lines for these rates and has empowered
during the below stated period. The annexed notice, a we Cityhetheroro review them to determine
whether not they conform with FCC lim-
its.
Effective July 1,2000,the rate charged
Proposed Basic Cable Rates i by AT&T Cable Services for basic service
will increase from $11.40 to $12.50 per
month. Expanded basic service is not
as published on: 5/24/00 within the review authority of the City. The
City is interested in receiving written input
The full amount of the fee charged for said foregoing regarding the public's perception of the
g g g publication is the sum of$31.62, fairness of the basic Cable rates. Written
charged to Acct. No. 8050640. correspondence will be received until June
7,2000. Please direct comments to: City
. of Renton, City Clerk Division, 1055 S. i
Legal Number 7722 i Grady Way,Renton,WA 98055.
Marilyn Petersen
City Clerk/Cable Manager -
, /
Published in the-South County Journal
/4/
Z May 24,2000.7722_ _. '
. regal Clerk, outh County Journal •
Subscribed and sworn before me on this qday of f v 1 , 2000
j___ __"..:,_ )0,1_,al_vr4.<...._
•off f'D4% 0=.. Notary Public of the State of Washington '
, •
r NoTARy �'
'.�" 1: residing in Renton
_._ = King County, Washington
•S ds —
Ilt •O PUB ,,
CITY OF RENTON
PROPOSED BASIC CABLE RATES
The City of Renton is in the process of reviewing rates charged by AT&T Cable Services
to its subscribers for basic cable service. The FCC has established guidelines for these
rates and has empowered the City to review them to determine whether or not they
conform with FCC limits. Effective July 1, 2000, the rate charged by AT&T Cable
Services for basic service will increase from $11.40 to $12.50 per month. Expanded
basic service is not within the review authority of the City. The City is interested in
receiving written input regarding the public's perception of the fairness of the basic cable
rates. Written correspondence will be received until June 7, 2000. Please direct
comments to: City of Renton, City Clerk Division, 1055 S. Grady Way, Renton, WA •
98055.
4 j''•...
Marilyn ir etCr-n
City Clerk/Cable Manager
Published: South County Journal: May 24, 2000 .
Account#50640
AFFIDAVIT OF PUBLICATION
Lori L. Furnish first duly sworn on oath states that he/she is the Legal Clerk of the
SOUTH COUNTY JOURNAL
600 S. Washington Avenue, Kent, Washington 98032 - • ,
a daily newspaper published seven (7)times a week. Said newspaper is a legal j CITY OF CAB N
PROPOSED BASIC CABLE RATES j
newspaper of general publication and is now and has been for more than six months ,The City of Renton is in the process of
prior to the date of publication, referred to, printed and published in the English language reviewing the rates charged by TCI to its
subscribers for basic service.The FCC has + '•
continually as a daily newspaper in Kent, King County, Washington. The South County ; established guidelines for these rates and
Journal has been approved as a legal newspaper by order of the Superior Court of the . has empowered the City to review them to
State of Washington for King County. determine whether or not they confirm with
, FCC limits. Effective June 1, 1999, basic
The notice in the exact form attached, was published in the South County , rates charged by TCI Cablevision will
Journal (and not in supplemental form)which was regularly distributed to the subscribers increase from$10.96 to$11.22 per month.
during the below stated period. The annexed notice, a The City is interested inl receiving perceptiontef
input regarding the public's of
the fairness of the basic cable rates.
Written correspondence will be received
Proposed Basic Cable Rates until May 22, 1999. Please direct com-
ments to: City of Renton, City Clerk
as published on: 5/8/99 Division, 1055 S. Grady Way, Renton, WA
98055.
Marilyn J.Petersen
The full amount of the fee charged for said foregoing publication is the sum of$28.75, City Clerk/Cable Manager
charged to Acct. No. 8050640. Published in the South County Journal
Legal Number 6062 / /
M May 8, 1999.6062
Legal Clerk, South Co—Journal 1`
Subscribed and sworn before me /this /4day of /1/ , 19/
4111111 1
1ILIII►. _ 1�1
OlitillfillifOav....“.'Yy0�'�� Notary Public of the State of Washington
`1:NO --'.�9;d' S. residing in Renton
ki
‘' NOTARy �''; ? King County, Washington
_._ e
y9 PUB LIC 4, 'K
muw
CITY OF RENTON.
PROPOSED BASIC CABLE RATES
The City of Renton is in the process of reviewing the rates charged by TCI to its
subscribers for basic service. The FCC has established guidelines for these rates and has
empowered the City to review them to determine whether or not they confirm with FCC
limits. Effective June 1, 1999,basic rates charged by TCI Cablevision will increase from
$10.96 to $11.22 per month. The City is interested in receiving written input regarding
the public's perception of the fairness of the basic cable rates. Written correspondence
will be received until May 22, 1999. Please direct comments to: City of Renton, City
Clerk Division, 1055 S. Grady Way, Renton, WA 98055.
Marilyn fli sen
City Clerk/Cable Manager
Published: South County Journal: May 8, 1999
Account#50640
We're taking television
jn into tomorrow.
V
1.41)'1
TCI Cablevision of Washington, Inc.
®
March 26, 1999
The Honorable Jesse Tanner CITY OF RENTON
Mayor, City of Renton
And, Members of the City Council MAR 3 0
200 Mill Ave South 1999
Renton, WA 98055 RECEIVED
CITY CLERK'S OFFICE
Dear Mayor Tanner and Members of the City Council,
Effective the end of April, TCI will be making changes to the cable service offered in your
community. These changes include the frequently requested addition of TV Land and The Golf
Channel to the Digital Service and the deletion of MuchMusic and Discover Home & Leisure
from the Digital service. Also, Bravo, ESPNC, and DMX are relocating to new channel
locations as shown below:
Channel # Current Line-Up Date New Line-Up Comments
163 -- 29-Apr TV Land NEW
4 405 -- 29-Apr The Golf Channel NEW
ttl476 MuchMusic 29-Apr Deleted
14)
201 Discovery H&L 29-Apr -- Deleted
180 Bravo 30-Apr Bravo Moves to 181
403ESPNC 30-Apr ESPNC Moves to 407
4 906-910
910 DMX 30 Apr DMX Moves to 941-
945
We are notifying customers of these changes 30-days prior to implementation via a legal notice
in the newspaper. In addition, a message will appear on their billing statement detailing these
changes.
Please contact me at(253) 288-7450 with any questions.
Sincerely,
David J. Krook
General Manager, Auburn office
TCI Cablevision of Washington, Inc.
DK:cb
cc: Marilyn Petersen, City Clerk
Lon Hurd
Auburn Office
&eQ ,� 0 Auburn Way N.
- Auburn,WA 98002ay
13'1 (206)833-9026
FAX(206)939-6235
An Equal Opportunity Employer
-feA
.110
efyd
TCI
October 1, 1998 CITY OF RENTO
OCT 02 1998
The Honorable Jesse Tanner RECEIVED
Mayor, City of Renton CITY CLERK S OFFICE
And, Members of the City Council
200 Mill Ave South
Renton, WA 98055
Dear Mayor Tanner and Members of the City Council,
•
I wanted to take this opportunity to share with you some information related to a significant
enhancement we are making to our customer billing system. For the last several years, TCI has
used a third party billing vendor called CableData to process our customer account information
and statements. At the end of this September, we will be converting to a different third party
billing vendor named Cable Services Group ("CSG").
There are many benefits we expect to receive from the conversion to CSG. The new billing
system will be much more flexible to the needs of our customers as well as to the needs of our
business. For example, customers will now be able to choose what day of the month they would
like to receive their bill. In addition, our monthly statements will be much clearer and easier to
read.
We will also be installing high-powered personal computers for all employees working on
customer account information. This will ultimately speed up the processing of each customer
transaction. As we implement the new billing system, we will take the opportunity to implement
revised internal processes that improve and enhance customer service.
While we are very excited about our new billing system and the benefits it will bring, we
recognize that software conversions can create disruptions for our customers and our employees.
We have organized a cross-functional employee team to accomplish our conversion in the
smoothest possible manner. Communication with our customers, employees and partners, such
as Renton is a high priority for this group.
Accordingly, I will follow-up with a copy of the notice that will be sent to customers with their
statements mailed on October 9, 1998. Beginning with the statements we mail on October 9th,
customers will see slight changes in the due date of their payments and timing of their
statements. We will be communicating each of these changes to customers prior to such change.
! e :
Com TCI of Washington, Inc. Auburn Office
yA/ ClIAtiFrY1/4, 4020 Auburn Way N.
Auburn,WA 98002
(253)833-9675
FAX(253)939-6235
An Equal Opportunity Employer
Additional information related to the conversion that you should be aware of:
• We are trying to minimize any prorated bills during the conversion, but certain customers
may receive a bill for more than one month of service. If this is necessary, that bill would
either be preceded or followed by a bill for less than one month of service. The combined
bills would therefore represent our normal charges for two months of service.
• Late fees will only be imposed on payments as of the date normally imposed on our old
billing system.
• Customer account information will continue to be available at all times on the old billing
system until we are fully operational on our new system the week of October 5, 1998.
• We anticipate that we will be mailing customer statements on our new system on a regular
schedule by the week of October 19, 1998
• We have implemented this new billing system at other TCI systems in the Northwest this
year. During the earlier conversions we found that our customer service representatives
experience a learning curve as they learn to operate the new billing system to the level of
proficiency they had on the old billing system. While we have made significant investments
in training our representatives on the new system, this learning curve is difficult to avoid.
Experience tells us that the length of time an individual customer transaction takes will be
substantially longer during the first 7 — 8 weeks of operation. As a result, we expect that our
customers willexperience longer telephone hold times when calling us than they will under
normal operations. Your office may receive phone calls from our customers complaining
about these longer hold times. Please know that we will be working as hard as we can to get
through this initial period quickly to restore our normal high level of service to our
customers.
Again, our employees and our management team are committed to executing this conversion in a
manner that minimizes the impact on our customers. Please let me know immediately if we have
not provided you with the necessary information to answer any particular concerns.
We hope that you share our enthusiasm for the customer service benefits of this new billing
system. If you have questions in the meantime about this or any other matter please call me at
(253) 833-9675.
Sincerely,
Daniel Haynes
Business Operations Manager
TCI Cablevision of Washington, Inc.
DH:cb
Marilyn Petersen, City Clerk
E5 TCI CABLE SOU;" ( EAMOUNT DUE
)5 SEATTLE OFFICE N, DUE 18
, .00
L • 15241 PACIFIC''nri( SOUTH
?3 SEATTLE WA 98188
i6 i
L RETURN SERVICE REQUESTED $ 1
'
PLEASE RETURN THIS TOP PORTION ONLY,WITH REMITTANCE TO Z ,.:: ?! ?jour' 4
.._..�_ ..._.___...--- __ - PLEASE INDICATE
2519 AV 1 B 10 A 53654 **5DGT 000-09-98-D-C AMOUNT ENCLOSED
II'I"I"I'IIII"I'I"1'1"'1'1"'II"II"'I'lll"'ll""I'I'I TCI CABLE OF SOUTH SEATTLE
RENTON CITY HALL PO BOX 5310
200 MILL AVE S DENVER CO 80217-5310
RENTON WA 98055en3OF RENTON
SEP 1 5 1998 II..I.I1.•..,I,I,..111...I.I.6..11...J111 • IIII III
02185 309780 01 y K'yi► --wf1l12U0 36
ACCOUNT NUMBER -ThBILLED FROM BILLED T. DATE DUE INC D PAYMENTS
fCI CABLE SOUTH _ _ _ RECEIVED BY
SEATTLE OFFICE 102185430978.0-01�-2 9/25/98 10/24/9:J NONE DUE 9/10/98
** CUSTOMER SER ' E I i 'MATION **
=OR- 200 MILL AVE S CABLE STORE - 15241 P. IFIC HIGHWAY SO
r �- MON-FBI,-8AM-.7PM & SAT, 8AM-5PM
8/24 BEGINNING BALANCE '`�� .00CUSTOMER SERVICE 433-3401
`� ------ „,/24''H O U RS A DAY
9/25-10/24 COURTESY BASIC ���`� .00 � �� !' moi' ;�
9/25-10/24 THE CABLE GUIDE .`00 /' ./9
9/25-10/24 VCR .00 / l
9/24 BALANCE DUE •
<,, \\/(t .
.00 `�/i� I�
ICI IS MAKING SOME BIG IMPROVEMENTS. WE'RE UPGRADING THE TECHNOLOGY WE USE
=OR CUSTOMER SERVICE AND BILLING. THIS MEANS BETTER, FASTER, AND SIMPLIFIED
SILLS PLUS BETTER SERVICE OVER THE PHONE. AS WE SWITCH TO OUR NEW SYSTEM
(OU'LL NOTICE SOME OF THE FOLLOWING: 1) YOUR TCI ACCOUNT NUMBER WILL CHANGE.
?) YOUR FIRST NEW BILL MAY ARRIVE EARLIER OR LATER THAN USUAL.
S) YOUR NEW BILL WILL LOOK DIFFERENT BUT, NO CHARGES WILL CHANGE.
i) OUR PHONES MAY BE BUSIER THAN USUAL AS WE HANDLE RELATED CALLS.
(HANK YOU FOR ALLOWING US TO SERVE YOU BETTER.
LATE FEES 6'' AUTHORIZED PAYMENT, ,,,51TERS
Failure to make full payment ba? " 'Ile next statement is You must bring your stir`' 1'nt with you when paying at an
produced will result in a late fee, 3,which will appear on authorized payment cel!, ."ou may make your payment or
your next statement.Current payments,meaning payments return equipment to any of the following locations:
that are made by the Due Date,can be mailed or made at TCI Westside Pharmacy The Mail Clinic
Cablevision of South Seattle's cable store or at one of our 5401 California SW 70 E Sunset
payment centers. Way
PAST DUE ACCOUNTS Seattle,WA 98136 Issaquah,WA 98027
M-To avoid a temporary interruption of your cable service,late Sat 9:a 3p Sat 9-15:30p
•
payments can be made in person at our Cable Store at: Sat 10a 3p Sat 9a 1 p
15241 Pacific Hwy S.or at one of our payment centers.If Parcel Plus
your account is disconnected due to non-payment,a 17913 108th Ave SE
reconnection fee will be required to reconnect your service. Renton,WA 98055
For your convenience,plan in advance of the following M-F 9a-6:30p
posting times for your payment options: Sat 9:30a-2:30p
Mail to the PO Box Up to 3 working days
Payment Centers Up to 3 working days
Credit Card 1 working day
Cable Store 1 workingdayTCI CARIE SOUTH oue
SEATTLE OFFICE su WM/3W
Night Drop 1 working day 15241 PACIFIC HWY SOUTH
SEAS TLE WA 90188IP
RETURN CHECK FEE 5 i
A fee of$20.00 will be charged for all checks not honored by
your banking institution.Payment to replace the check must JO LEAEERE]UNN THIS TOPPOPTION'ONLY,WITH REMITTANCETO -,,.?4.R?y/ 1 C4Q
be made by cash, money order,Visa or Mastercard.Payment 0z °°°U7-95-°-C W"" °
012 CP 1 8 1 A 49261•CR 14 TCI Cablevision of
is due within 10 days from the date your written notification 03 ® CHARLES WILLIAMS ® - I Washington,Inc.
from TCI Cablevision is mailed. , 17000 12111 AVE SE SEATTLE OFFICE
IIEN'I'ON TVA 98055-6509 "PO BOX 1889
DISPUTED BILLINGSEATTLE WA 98111-1889
Should there be a question or problem with your bill,please
notify our office at 433-3401 within 30 days of the billing.If
02185 611000 02 G 001217 so
you prefer,you may write to us at: 0
0
TCI Cablevision of South Seattle,15241 Pacific Hwy S, B21R5-(;1, 53-oz- 7/J3/45 0/z,i 95A �1� 5
iiii
Seattle,WA 98188,Attention:Correspondence Department.
FCC,CABLESERVICES BUREAU
While disputing an amount on your bill,you must pay all FOR-17000 12111 AVE SE CONSUMER PRO'T'ECTION DIVISION
1919 SI STREET NW
undisputed amounts before the payment due date to keep ;8,7/24 BEGINNING BALANCE. .00 WASHINGTON,DC 2055.1 ID
your account current. 7/13-7/24 I'ARTIA1.MONr1I 1'IIONC: (202)•11 G-0851
HOW TO READ YOUR BILL it z DRA ('" ISE F 7.93 YOUR FRANCHISE AUTHORITY'S NAME AND
7/13-7/24 2.0 FRANCHISE FEE .40 ADDRESS IS:KING COUNTY OFFICE OF
7/13-7/24 2.09'W STATE IT,L .IG CAL)I.E CGMMUNICASIONS,700 5'ITI AVE
1. Payment Due Date:The date full payment is due, 7/12 REST EN'1='I'IIANK YOU 31.41- #2305,SNAVEI.II,WA 98)04.YOU)!PCC
Y P Y 7/)2 RESTART 15.94 COMMUNI'T'Y UNIT IS:WA0003.
normally20 days from the dateyour statement is 7/12 8.20%SALES'TAX 13)
Y 7112 471'R,$'I'A'fl'.EX'I'X .08 '•CUSS OMEII SERVICE INFORMATION••
mailed. 7/12 SW FRANCHISE FEE. .0)) CABLE STORE.•-15241 PACIFIC HIGHWAY SO
7/25-8/24 BASIC CABLE 10.119 MON-FII),8AMMER-7I'M&OAT,AAM-SPM
10 -3401
2. Customer Mailing Address:Please notify TCI Cablevision 7/25-8/24 REGULATO BASIC 0.04 MONC-I RI,18AM 71'SE11.1&SAT,VICE 38AM--5PNI
7/25-8/24 O ULAS'D RY PLC .04
i: 0/245)6lIANGI1I5F
20STAM 1.02of South Seattle of address changes /58/ 4 20fi 5'I'A1I!EX lC 02 WELCOME M 1C.I.C,EcTs IHARGTIIIS STATEMENT)IEFLECI'S CHARGES
or corrections. / .1 BNCE.DUE 12.17 FOR ONE.MONTH'S SERVICE IN
3. Payment Address:Address to which payment should be
made.
4. Customer Account Number:Please include this number
on all checks or money orders,or when inquiring about
your account. FRANCHISE AUTHORITY
5. Billing Period:Period for which current charges are King County office of Cable Communications,700 5th Ave
billed. #2300,Seattle,WA 98104.FCC Community Unit is:WA0083.
6. Bill Process Date:Any payments received and City of Seattle,618 2nd Ave,Seattle,WA 98104.FCC
processed by this date will be shown on this statement. Community Unit is:WA0069.
If you send in a payment after this date,it will appear on - City of Burien,415 SW 150th St.,Burien,WA 98166-1973. - - -
your next statement. FCC Community Unit is:WA0539.
7. Service Address:The address where service is provided.
8. Beginning Balance:The total of all previous unpaid City of Issaquah,PO Box 1307,Issaquah,WA
charges. 98027-1307.FCC Community Unit is:WA0122.
9. Payments received by Bill Process Date. City of Seatac,17900 International Blvd.Suite 401,Seatac,
10. Monthly Charge:For cable service,billed one month in WA 98188.FCC Unit is:WA0541.
advance
11. Pro-rated Amounts:Charges that occur in the middle of City of Renton,200 Mit Ave S,Renton,WA 98055.FCC Unit
your billing cycle,such as starting service or making is:WA0068.
changes to your current service mid-cycle.Pro-rated City of Tukwila,6200 Southcenter Blvd.,Tukwila,WA 98188.
amounts are billed from the date you started or changed FCC Unit is:WA0205.
your service to the beginning of your next billing period.
12. Balance Due:The total of current charges plus any prior City of Normandy Park,801 SW 174th St.,Normandy Park,
balances. WA 98166.FCC Unit is:WA0188.
13. Important Bill Messages. 021-85"M5*
I\1 0
TCI
CITY OF RENTON
July 23, 1998
City of Renton J U L 2 7 1998
Marilyn Peterson RECEIVED
200 Mill AVE S CITY CLERK'S OFFICE
Renton,WA 98055
Re: Retroactive Franchise Fee Payments
Dear Ms. Peterson:
In response to a letter received from 3H Cable Communications Consultants on July 16, 1998, I am enclosing a
check in the amount of $25,849.30 for retroactive franchise fees. This payment satisfies our obligations with
respect to the Fifth Circuit Court of Appeals decision in Dallas v. FCC.
As you may be aware, on March 2, 1998, the Federal Communications Commission (the "FCC") issued an order
that allows cable operators to recover from our customers any payments made as a result of the Fifth Circuit Court
of Appeals decision. We will recover the retroactive payment over a twelve month period starting January 1, 1999.
This will be shown as a separately itemized amount on customers' bills of approximately$0.17 per month.
Please note that the retroactive payment will be set up as a receivable account. Therefore,the amount received from
customers to recover the retroactive payment will not be recorded in gross revenues and will be excluded from our
franchise fee calculations during the recovery period.
We will be notifying our customers of this temporary collection of additional franchise fee payments by including
the following message on billing statements in the first month that the recovery will begin:
Please note that a new line item appears on your bill. This provides for the collection of
corrected payments of franchise fees from our customers and is being implemented as a
result of a recent federal court decision regarding an FCC issue. This itemization will
appear on your bills for approximately 12 months.
Please feel free to contact me if you have any questions about this process
Sincerely,
On Behalf of TCI of Washington,Inc.
Qh.L;Jujig J/�'
g L 1
Marie Ful hum l/
Director of Regulatory Affairs
Enc.
Cc: Ken Humbert-TCI
Lon Hurd—3H Cable Communications Consultants
TCI Northwest,Inc. 2233 112th Avenue NE
Bellevue,WA 98004
(425)462-2620
FAX(425)462-2853
An Equal Opportunity Employer
/r
!r
K1
0
TCI
i
RECEIVED
June 25,1998
JUN 2 6,1998
The Honorable Jesse Tanner
Mayor,City of Renton MAYORS OFFICE
200 Mill Avenue South
Renton,Washington 98055
Re: Merger of TCI and AT&T
Dear Mayor Tanner and Members of the City Council:
Today TCI,the parent company of the cable system that provides service to your
community announced that it will merge with AT&T. This merger will result in the
creation of a new company, AT&T Consumer Services(ACS). This merger will allow for a
historic combination of TCI's expertise in the provision of video services and AT&T's
expertise in the provision of telecommunication services. Our customers and the
communities we serve will benefit from the video,telephony and data products and
services that ACS will be able to provide.
The merger is subject to approval of the shareholders of both companies,as well as various
regulatory authorities. Both companies will be performing due diligence in the next few
months. Consent will be obtained from your community if such consent is required by the
terms of our franchise with you.
I have enclosed a copy of the press release announcing the TCI and AT&T merger. As I
have more information,I will share it with you. If you have any questions,please feel free
to call me at(206)433-3434.
TCI Cablevis. of Washington
Gary A.Hokenson
General Manager
Enclosure
cc: Collen Abdoulah
Lela Cocoros
Cynthia Eichner
Douglas Garrett
LaRae Marsik
Richard Treich
TCI of Washington South Seattle Office
15241 Pacific Hwy.So.
Seattle,WA 98188
(206)433-3434
FAX(206)433-5103
Wil; T C I
--� AikT
News Release
For Further Information:
Adele Ambrose,AT&T Eileen Connolly, AT&T
908-221-6900/office 908-221-6731/office
888-602-5420/pager 888-602-5417/pager
LaRae Marsik/TCI Katina Vlahadamis/TCI
303-267-5277/office 303-267-5659/office
888-788-1282/pager 800-209-5011/pager
AT&T and TCI to Merge
AT&T To Create Separately Traded Unit to Provide Consumer Communications and
Entertainment Services
AT&T's Second Quarter Earnings To Exceed Estimates
FOR RELEASE WEDNESDAY,JUNE 24, 1998
NEW YORK--AT&T announced today that it has signed a definitive merger agreement
with Tele-Communications,Inc. (TCI) for an all-stock transaction valued at approximately$48
billion. Under the agreement, AT&T will issue 0.7757 shares of AT&T common stock for each
share of TCI Group Series A stock and 0.8533 shares of AT&T for each share of TCI Group
Series B stock.
Immediately following the merger,AT&T will combine its current consumer long
distance,wireless and Internet services units with TCI's cable,telecommunications, and high-
speed Internet businesses to create a new subsidiary—AT&T Consumer Services. The company
will trade as a"Ietter"or"tracking stock" on the New York Stock Exchange and have a
significant public ownership. AT&T will also issue separate tracking stock to holders of TCI's
programming arm,Liberty Media Group,to continue the holders' interests in the assets now
represented by those shares.
Separately,AT&T announced that its second quarter earnings would exceed analyst
estimates of 80 cents to 82 cents per share by 8 cents to 10 cents due to earlier
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•
and better than expected benefits from its on-going cost reduction efforts. The company
anticipates 1998 earnings of$3.35 to $3.45 per share,adjusted for the effects of the company's
pending merger with TCG.
AT&T Consumer Services
AT&T Consumer Services will provide the broadest set of consumer communications
services-- including local,long distance,wireless and international communications,cable
television,dial-up and high-speed Internet access services --all under the AT&T brand name.
AT&T Consumer Services will own and operate the nation's most extensive,broadband
local network platform. Following the merger,the new unit intends to significantly accelerate
the upgrading of its cable infrastructure,enabling it to begin providing digital telephony and data
services to consumers by the end of 1999,in addition to digital video services.
"Today we are beginning to answer a big part of the question about how we will provide
local service to U.S. consumers," said C.Michael Armstrong,chairman and CEO of AT&T.
"We are merging with TCI not only for what it is but for what we can become together,"
Armstrong explained. "Through its own systems and in partnership with affiliates,AT&T
Consumer Services will bring to people's homes the first fully integrated package of
communications, electronic commerce and video entertainment services. And it will do it with
the quality and reliability that people have come to expect from AT&T."
"This merger is a tremendous growth opportunity for TCI's shareowners and employees,"
said John C. Malone,chairman and CEO of TCI. "As TCI continues the
large-scale deployment of advanced digital set-top devices, AT&T's extraordinary brand and
resources are ideal complements to TCI's broadband cable distribution and operations. AT&T
Consumer Services will offer consumers a wide variety of entertainment,information and .
communications products, which thoughtfully address personal tastes,needs,choice and
convenience."
John D. Zeglis,currently president of AT&T,will be chairman and CEO of
AT&T Consumer Services and will remain on the AT&T Board of Directors. Leo J. Hindery,
Jr.,currently president of TCI,will be the new unit's president and chief operating officer.
Malone has agreed to become a member of the AT&T Board of Directors.
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AT&T Consumer Services will provide its services to consumers through a combination
of its own broadband networks and services it will procure from others, including AT&T. The
new unit will include all of the cable television systems AT&T is acquiring in the merger with
TCI, as well as AT&T's fixed wireless technology and related spectrum rights covering more
than 90 percent of the nation. When the merger and pending TCI cable system transactions are
complete,AT&T Consumer Services' wholly owned and affiliated cable systems will pass 33
million homes.
In addition to these physical assets, AT&T Consumer Services will also include all
elements of AT&T's existing consumer businesses,except network operations that it will
procure from its parent. AT&T's consumer businesses include the nation's leading long distance
services, with annual revenues of approximately$23 billion,and the most broadly available
wireless services, with annual revenues greater than$3 billion.
AT&T's consumer businesses include WorldNet,one of the industry's leading dial-up
Internet access services. Through the acquisition of TCI,AT&T Consumer Services will also
hold a controlling interest in the @Home Network,the leading provider of high-speed Internet
access and content services. @Home currently has affiliate agreements with TCI and several
major cable companies that collectively pass more than 50 million homes.
On a pro forma basis,before considering synergies,the company projects that AT&T
Consumer Services could have 1999 revenue of approximately $33 billion and earnings before
interest, taxes, depreciation and amortization (EBITDA)of approximately $7 billion to $7.5
billion. AT&T and TO anticipate their merger will result in increased revenue and lower costs,
producing synergies of approximately$2 billion per year beginning three years after the merger
closes. For example,the merger is expected to improve TCI's cable service penetration and
improve customer retention for AT&T's consumer long distance service. It will also help reduce
the charges AT&T pays to local telephone companies to handle long distance calls and allow
both companies to reduce their respective customer care,billing and advertising expenses.
Business Communications and Wholesale Networking Services
AT&T itself will remain the world leader in business communications services and become the
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leader in wholesale networking services. On a pro forma basis,the company projects its 1999
revenues from those businesses could exceed$29 billion and its EBITDA could reach
approximately$12 billion. AT&T will continue to provide global communications,outsourcing
• and systems integration services to more than 15 million businesses and institutions. It will own
and operate the world's most extensive and advanced communications network, the nation's
•
largest wireless infrastructure, and,following the pending acquisition of TCG, a local access
network reaching more than 250 cities from coast to coast.
"AT&T is now better positioned for growth,"said Armstrong. "When this transaction is
completed,AT&T will be the undisputed leader in three of the fastest growing segments of the
communications services industry—consumer,business and wholesale networking services."
Neither AT&T nor TO anticipates any significant downsizing to result from the merger.
Most AT&T and TCI employees will follow their jobs, and both companies have established
senior management teams to ensure a smooth transition. In fact,both
companies expect the merger and the creation of AT&T Consumer Services to accelerate their
growth, significantly enhancing career opportunities for all employees involved.
AT&T and TCI said that they expect the merger,which is contingent on regulatory and
other approvals,to be tax-free to their respective shareholders and to close in the first half of
1999.
Editor's Note: NEWS CONFERENCE—AT&T will hold a news conference at NOON EDT
today at its world headquarters at 32 Avenue of the Americas in New York City. AT&T
Chairman C. Michael Armstrong and TO Chairman John C. Malone will co-host the news
conference. Reporters who cannot attend can participate by calling in prior to noontime at 1-800-
553-0351 in the U.S. or 1-612-332-1020 elsewhere. A replay of the news conference will be
available for 48 hours starting at 4:00 p.m. EDT today at
1-800-248-7600 in the U.S. or 1-402-496-9635 elsewhere.
ANALYST CALL—Reporters can LISTEN ONLY to a briefing for analysts at 9:00 a.m. EDT
today. The briefing will feature Armstrong and Malone as well as AT&T's chief financial
officer, Daniel E. Somers. Leaders of the proposed new AT&T Consumer Services—John D.
Zeglis,chairman and CEO, and Leo J. Hindery, Jr.,president and COO—will,also participate.
Reporters in the U.S. can call 1-800-553-0272 or 1-612-332-1210 elsewhere.
SATELLITE COORDINATES —A satellite feed of the news conference is available at the
following coordinates: Ku band satellite TELSTAR 5,transponder 11. Downlink polarity;
vertical; downlink frequency, 11929 Mhz; location,97 degrees west.
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The foregoing are forward looking statements within the meaning of the Securities Act,
including statements concerning future operating performance, AT&T's share of new and
existing markets, and AT&T's revenue and earnings growth rates. Such forward looking
statements, which are not a guarantee of performance, are subject to a number of uncertainties
and other factors,that could cause actual results to differ materially from such statements,
including the ability to realize potential synergies and integrate operations; competitive pressures,
including the timing and level of RBOC entry into long distance; and the success and market
acceptance of new products and services. For a more detailed description of the factors that
could cause such a difference,please see AT&T's filings with the Securities and Exchange
Commission. AT&T disclaims any'intention or obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.
# # #
V
T C
FOR IMMEDIATE RELEASE
June 24, 1998
Contacts: Vivian Carr,Liberty Media Group,(303)721-5406
LaRae Marsik, TCI Media Relations, (303) 267-5273
Linda Dill,TCI Investor Relations, (303) 267-5048
LIBERTY MEDIA GROUP TO COMBINE WITH TCI VENTURES GROUP
New Entity Headed by John Malone to be Separately Traded Tracking Stock of AT&T
Upon Closing of AT&T/TCI Merger
NEW YORK,NY/ENGLEWOOD, CO -- Tele-Communications,Inc. announced its intention
to combine Liberty Media Group (NASDAQ: LBYTA), its programming arm, and TCI Ventures
Group (NASDAQ: TCIVA),its technology investments unit. The proposed combination is
concurrent with,but not conditional upon,today's announcement of the signing of a merger
agreement between Tele-Communications,Inc. (TCI) and AT&T(NYSE: T). Under the terms
of the consolidation,which is subject to shareholder approval, each outstanding share of TCIVA
or TCIVB stock will be exchanged for .52 shares of LBTYA or LBTYB, as the case may be.
John C. Malone, TCI's Chairman and Chief Executive Officer,will serve as Chairman of the
consolidated group, which will be called Liberty Media Group, and Robert R.Bennett, President
and CEO of Liberty,will be President and CEO of the new entity.
Upon closing of the AT&TCTCI merger,the shareholders of the new Liberty Media Group will be
issued separate tracking stock by AT&T in exchange for the shares currently held. In addition,
prior to the closing,Liberty's investment in At Home Corporation (NASDAQ: ATHM), its
investment in the National Digital Television Center, and its ownership of Western Tele-
Communications, Inc.will be acquired by TCI Group for$2.5 billion cash in a tax-free
transaction. The AT&T shares which TCI Ventures Group will acquire upon closing of the
Teleport (NASDAQ: TCGI) transaction will also be acquired by TCI Group for approximately
$3.0 billion cash in a tax-free transaction. The new AT&T tracking stock will track the
remaining assets of the current Liberty and Ventures Groups together with the approximately
$5.5 billion of cash proceeds from the foregoing transactions. Liberty will inherit TCI's net
operating loss carryforward existing at the closing of the AT&T/TCI merger; such carryforward
is currently approximately$1.7 billion and is subject to change prior to such closing.
"The new Liberty Media Group's exceptional programming and technology investments, plus the
substantial cash it will have, will help grow new businesses,develop content and realize solid
asset values for the benefit of the stockholders of Liberty Media Group,"said Mr. Malone. "I am
very pleased to work closely with Dob Bennett and to focus my attention on the wealth of
opportunities which exist."
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Tele-Communications,Inc.is traded through the TCI Group,TCI Ventures Group,and Liberty
Media Group common stocks. The Series A and Series B TCI Ventures Group common stocks
are traded on the National Market tier of the Nasdaq Stock Market under the symbols TCIVA
and TCIVB,respectively.
Liberty Media Group Series A and Series B Common Stock are series of Tele-Communications,
Inc. Common Stock and are traded on the National Market tier of The Nasdaq Stock Market
under symbols LBTYA and LBTYB,respectively. Liberty Media Corporation operates the assets
that comprise the Liberty Media Group.
###
Certain of the information presented in this press release constitutes forward looking statements within
the meaning of the Private Securities Litigation Act of 1995. Although the Company believes that its
expectations are based on reasonable assumptions,there can be no assurance that actual results will not
differ materially from the Company's expectations. For additional information,please refer to the
reports filed by the Company with the Securities and Exchange Commission. The Company assumes no
obligation to update the information contained in this press release.
MICHAEL ARMSTRONG
CHAIRMAN AND CHIEF EXECUTIVE OFFICER - AT&T
C.Michael Armstrong was elected chairman of the board and CEO of AT&T effective
November 1, 1997.
At AT&T, he heads the world's leading communications services company, with more
than 90 million customers, 130,000 employees and$52 billion in revenues.
Armstrong came to AT&T from Hughes Electronics,where he had been chairman and
CEO for six years,transforming it from a company focused mainly on defense to a powerful
competitor in the commercial electronics, space and telecommunications industries.
Prior to Hughes,Armstrong spent more than three decades with IBM. Beginning there as
a systems engineer,he rose through the ranks to become senior vice president and chairman of
the board of IBM World Trade Corporation. Earlier, he played major roles in IBM's personal
computer and telecommunications businesses.
Born October 18, 1938, in Detroit, Michigan, Armstrong earned a B.S. degree in business
and economics from Miami University of Ohio in 1961,and completed the advanced
management curriculum at Dartmouth Institute in 1976. He was awarded an honorary Doctor of
Laws degree from Pepperdine University in 1997.
An active supporter of higher education,Armstrong is a trustee of Johns Hopkins
University and a member of the advisory board of the Yale School of Management.
Armstrong serves as chairman of the President's Export Council, the premier national
advisory committee on international trade to President Clinton and the Secretary of Commerce.
He is also a member of the Business Council,Council on Foreign Relations,the National
Security Telecommunications Advisory Committee and the Defense Policy Advisory Committee
on Trade.
Armstrong is a.member of the board of directors of Travelers Corporation, and the
supervisory board of the Thyssen-Bornemisza Group.
April 1998
TCI
Biography
John C. Malone
Dr. John C. Malone is Chairman and Chief Executive Officer of Tele-Communications,
Inc., (TCI), a position he has held since 1996. Previous to that, from 1973 to 1996, Dr. Malone
served as President and CEO of TCI. He is a Director of TCI and also serves on the Board of
Directors for the Bank of New York, the CATO Institute, Discovery Communications, Inc.,
PRIMESTAR, Inc. and BET Holdings, Inc. Additionally, Dr. Malone is Chairman of the Board
for Cable Television Laboratories, Inc., and Tele-Communications International,Inc.
Born March 7, 1941, in Milford, Connecticut, Dr. Malone was a Phi Beta Kappa and
merit scholar at Yale University where he obtained a Bachelor of Science in Electrical
Engineering and Economics in 1963. He also received a Master of Science in Industrial
Management from Johns Hopkins in 1964 and a Doctor of Philosophy (Ph.D.) in Operations
Research from Johns Hopkins in 1967.
Dr. Malone began his career in 1963 at Bell Telephone Laboratories/AT&T in economic
planning and research and development. In 1968, he joined McKinsey & Company and in 1970
he became Group Vice President at General Instrument Corporation (GI). He was later named
President of Jerrold Electronics,a GI subsidiary.
He served as Director of the National Cable Television Association (NCTA) from 1974
to 1977 and again from 1980 to 1993. During the 1977-1978 term, Dr. Malone was the NCTA's
Treasurer.
In 1983, Dr. Malone received the NCTA Vanguard Award, one of the highest honors in
the cable television industry. He has received many other awards and honors which include:
TVC Magazine Max of the Year Award - 1981; Wall Street Transcript's Gold Award for the
cable industry's best Chief Executive Officer - 1982, 1985, 1986 and 1987; Wall Street's
Transcript Silver Award in 1984 and 1989;. Women In Cable's Betsy Magness Fellowship
Honoree; University of Pennsylvania Wharton School Sol C. Snider Entrepreneurial Center
Award of Merit for Distinguished Entrepreneurship; American Jewish Committee Sherrill C.
Corwin Human Relations Award; Denver University Honorary Degree for Doctorate of Human
Letters - 1992; Communications Technology Magazine Service and Technology Award; Bronze
Award - 1993 Financial World CEO of the Year Competition; and 1994 Hopkins Distinguished
Alumnus Award.
JOHN D. ZEGLIS
PRESIDENT
John Zeglis is President of AT&T and the head of operations for this global
communications company.Zeglis and Mike Armstrong,AT&T's CEO,together constitute the
company's Office of the Chairman,which has overall responsibility for AT&T's strategy
direction and operations.
Zeglis grew up in Mornence,Illinois. He spent his undergraduate years at the University
of Illinois, and was a 1972 magna cum laude graduate of Harvard Law School. He was a senior
editor of the Harvard Law Review and won a Knox Memorial Fellowship for a year of
postgraduate study in law and economics in Europe.He began his career in law in 1973 as an
associate with Sidley &Austin.He became a partner in 1978,and on January 1, 1984,he joined
AT&T as corporate vice president and general attorney.
Zeglis was named AT&T's general counsel in 1986. While retaining that title he served in
• a series of executive assignments with increasing responsibility before being elected vice
chairman in June 1997 and president in October 1997.
He is a member of the American Bar Association and state and local bar associations and
professional groups, and is active in volunteer groups supporting education. He is the chairman
of the Board of Trustees of the George Washington University, a trustee of the Brookings
Institution in Washington,D.C., and a trustee of the Culver Education Foundation, Culver,
Indiana.Zeglis is also a member of the Kellogg Advisory Board of the J.L. Kellogg Graduate
School of Management at Northwestern University and a member of the University of Illinois
Business Advisory Council.He is a director of the Helmerich and Payne Corporation in Tulsa,
Oklahoma, as well as the Illinova Corporation in Decatur, Illinois.
Zeglis lives in New Jersey and is married to the former Carol Jane Hamm.They have
three children.
January 1998
£V d
TC .[
Biography
LEO J. HYNDERY, JR.
Leo J. Hindery, Jr., 50, is the President, Chief Operating Officer and a Director of Tele-
Communications,.Inc. (TCI). Mr. Hindery was elected President of TCI on March 1, 1997. TCI is the
world's largest multiple cable system operator, and it owns .and has interests in domestic and
international programming, telephony and data service businesses. Mr. Hindery is also Chairman of TCI
Communications,Inc. (TCIC),Liberty Media Group(LBTY)and TCI Ventures Group(TCIV).
Prior to joining TCI, Mr. Hindery was Managing General Partner and Chief Executive Officer of
InterMedia Partners and its related entities, which he founded in 1988. InterMedia is the nation's tenth
largest multiple system operator.
Before launching InterMedia Partners, Mr. Hindery was Chief Officer for Planning and Finance of The
Chronicle Publishing Company of San Francisco, which owns substantial newspaper and television
broadcast properties and, at the time, owned significant cable television properties. Prior to joining
Chronicle, Mr. Hindery was Chief Financial Officer and Managing Director of Becker Paribas, Inc., a
major New York-based investment banking firm. His career began with Utah International Inc. in 1971,
where he became the company's senior financial officer, with responsibility for financings, acquisitions
and development.
Mr. Hindery graduated with honors from Stanford University's Graduate School of Business in 1971,
where he earned a master of business administration degree. He is a graduate with honors of Seattle
University.
Mr. Hindery is a Director of Tele-Communications, Inc. and of @Home Network, Cablevision, Inc.,
Lenfest Group, TCI Music, Inc., Tele-Communications International, Inc., and USA Networks, Inc.;
Chairman, a Director and member of the Executive Committee of the National Cable Television
Association (NCTA); Chairman and a Director of C-SPAN; and a member of the Executive Committee
of Cable in the Classroom. He is also an honorary chair of Cable Positive, the cable industry's AIDS
awareness organization, and a member of the Stanford Business School Advisory Council.
AFFIDAVIT OF PUBLICATION
Kristina Thompson, being first duly sworn on oath states that he/she is the Legal Clerk of
the
SOUTH COUNTY JOURNAL
600 S. Washington Avenue, Kent, Washington 98032
a daily newspaper published seven (7)times a week. Said newspaper is a legal
newspaper of general publication and is now and has been for more than six months -
prior to the date of publication, referred to, printed and published in the English language ,
continually as a daily newspaper in Kent, King County, Washington. The South County \--- PUBLIC COMMENT IS REQUESTED 1
ONJournal has been approved as a legal newspaper order of the Superior Court of the en BASIC CABLE SERVICE RATES
PP 9by P Renton citizens are invited to comment
— ----_—State-of-Washington-for-King-County--- on the proposed increase in basic cable
The notice in the exact form attached, was published in the South County , rates by TCI Cablevision,Inc.froth$10.73
$10.96 er moth.
Journal (and not in supplemental form)which was regularly distributed to the subscribers to The proposed increase will be effective
during the below stated period. The annexed notice, a i June 1, 1998. Please send written com-
ments to: - - -
Basic Cable Service Rates " City Marilynf Renton
. -"
as published on: 5/8/98 I 200 Mill Avenue South
I` South Co n
ty8Journalin thety8Journal
The full amount of the fee charged for said foregoing publication is the sum of$21.94 j May.8,1998.4586
Legal Number 4586
. 41
Lelia lerk, S. th Co my Journal
Subscribed and sworn before me on/s /Kday of Al , 19 qg
```�� unee►ee ,
•
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residing in Renton
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King County, Washington
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•
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: " . : -. • . • - -• . CITY '7F -RENTON •
•
t�61-,- City Clerk
• - ' Marilyn J.Petersen
Jesse Tanner,Mayor . • ' •
•
' • •
December 24, 1997 .
•
•
•
• ' . ` Gary Hokanson• , General Man •
ager . • . • -
•
. TCI Seattle;Inc.•• '
• .••: • 15241 Pacific Highway South ' • •• .
Seattle, WA 98055 •
:• •Re: Extension Agreement;Equipment,Installation and Additions Agreement •
Dear Gary:
.Enclosed are fully executed originals'of the two referenced agreements for your files. ....• • , • .
.• Sincere best wishes to you and,yourifamily for a peaceful.and_happy holiday season. .,
•
Sincerely, �.• ., ri
•
•
•
;n. � �/1 .. .. :•;� ^tib`." . ..
.Marilyn /P31 rsen _. . ., ? •"
City Clerk •
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•.
TCI
December 10, 1997 tY OF RENTO
Sent Via Overnight Mail
DEC 1 1 1997
Marilyn Peterson
City Clerk RECEIVED
City of Renton CITY CLERK'S OFFICE
200 Mill Avenue South •
Renton,WA 98055
RE: Extension Agreement;Equipment,Installation.and Additions Agreement
Dear Marilyn:
I have enclosed two(2)partially executed originals of the aforementioned agreements for
City signatures. Upon full execution,please forward one original of each agreement to
Gary Hokenson,TCI Seattle System General Manager for our files.
Feel free to contact me at(425)462-2799 if you have any questions or comments
whatsoever. ••
Cordially,
C7S l/
anet L. Turpen
Regional Director of Franchising
jlt
Encl.
cc: Gary Hokenson
TCI West,Inc. 2233 112th Avenue NE
Bellevue,WA 98004
(425)462.2620
FAX(425)462-2853
An Equal Opportunity Employer
1
CITY )F RENTON
" City Clerk'
Jesse Tanner;Mayor' - -
Marilyn J.Petersen
October 14, 1997 - '
• . Gary Hokanson;.General Manager
- - • TCI Cablevision,-Inc. -. .. . .
:. '15241 Pacific Highway.South
Seattle, WA 98188 f...'. -
•
Re: • '. Amended Franchise Agreement-Equipment,Installation and Additions
Dear Gary: ° . .- - : •
=
:. - CIT` )F'.=RENTON •
Ian=. :a,,
' ; •• Office of the Cit•y Attorney
Jesse Tanner,Mayor` Lawrence J.Warren
jM •
•
EM• ORANDUM
•
To:••
Marilyn J. Petersen, City Clerk
,.From Lawrence J. Warri r,,-C...!.t.y Attorney
Date: September. 9, 1997 '
Subject: m
• TCI Franchise Extension Agreement •• '
•
I havereviewed the above•referenced document;and the same is.approved as to,legal form,,;,-,: ', :.: ,.:
• _
rawrence J.-W.
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• APPROVED BY
COMMITTEE OF THE WHOLE CITY COUNCIL
• COMMITTEE REPORT Date 1?--P'-97
SEPTEMBER 8, 1997
TCI FRANCHISE EXTENSION
In August, 1993, the City Council adopted Ordinance No. 4412 which granted to TCI Cablevision
a 15-year franchise to operate a cable communication system within the City of Renton. The
franchise imposed numerous requirements, one of which was the completion of an upgraded fiber
optic cable system throughout the City which would expand the number of available television
- channels to fifty-four(54)by September 13, 1997.
TCI has requested a 24-month extension to September 13, 1999, to complete the fiber optic
rebuild and meet other requirements stipulated in Ordinance No. 4412. Iri lieu of paying penalties, •
TCI has agreed to provide the following in-kind considerations to the City of Renton in exchange
for extension of the franchise. -
1. Within 24 months, TCI shall provide a separate City=owned fiber optic cable system
connecting eighteen City facilities to a hub located at the'new Municipal Building.
2. TCI shall remove and reinstall the video equipment and cameras from the old Municipal
Building to the Council Chambers in the newlocation, and evaluate and enhance the existing
cablecast system to accommodate current and future needs.
3. TCI shall extend cable service to the new Municipal Building;:both libraries, the Community
Center and the new Fire Training Center,;,
4. TCI shall provide an annual payment to the City to defraythecost of video equipment
maintenance.
• Recommendation: • ' : •
The Committee of the Whole recommends approval of the proposed agreement with TCI -
Cablevision outlined above, and recommends that the Mayor and City Clerk be authorized to
-execute the agreement to extend,the franchise requirements. - •
'' ouncil Pr dent Kathy Keolker-Wheeler
} •
•
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•
CITY OF RENTON
MEMORANDUM
DATE: September 8, 1997
TO: Council President Kathy Keolker-Wheeler, and
Members,Renton City Council
FROM: Marilyn Petersen, City Cler
SUBJECT: Committee of the Whole Agenda- TCI Franchise Renegotiation •
Agreement
Background:
In August, 1993, the City Council dopted Ordinance No. 4412 which granted to TCI Cablevision
a franchise to operate a cable communication system within the City of Renton. The franchise
imposed numerous requirements, dne of which was the completion of an upgraded fiber optic
cable system throughout the City which would expand the number of available television channels
to fifty-four(54)by September 131 1997. The 15-year franchise extends from 9/13/93 through
9/13/2008.
Due to dramatic changes in technology and adoption of the new Cable Act in the past few years,
TCI's plans for a County-wide rebuild project were delayed. However, in May, 1997, TCI
announced that it was proceeding with plans to rebuild its systems and committing$2.5 billion for
upgrades nationwide. Completion of the project in King County is scheduled to begin in mid-
1999. TCI officials have contacted all franchise agencies, including the City of Renton, to begin
negotiation of potential franchise violations prior to 1997 default dates.
In Renton, TCI proposes to instal a 550 megahertz fiber to node cable system serving 600-1200
homes per node, and expanding the number of available channels to 54. The planning and design
phase should be completed by they end of 1997,with project completion estimated within 18
months thereafter.
Potential Violations: The following franchise requirements were required to be completed by
9/13/97:
1. Under Section 5, complete upgrade of City of Renton cable system to 54 channels,which has
capability of implementing certain enhanced services; and •
2. Under Section 5, provide, maintain, and operate a public access studio within a radius of
eight miles of Renton City Hall; and
•
3. Under Section 8, provide an interactive system with capability for institutional networks for
eduational and public safety communications; and
4. Under Sections 4 and 11, provide cable service in the entire franchise area.
Franchise Penalties: The franchise specifies penalties of$200 per day for each violation. TCI
has proposed in-kind considerations ih lieu of penalties.
Agreement for Franchise Extensions: Through negotiations, TCI has agreed to provide the
following in-kind considerations in exchange for extension of the franchise requirements.
1. Within 24 months, TCI agrees to provide a separate fiber optic cable to be separately hung or
•
attached to TCI systems connected to a hub at the new Renton Municipal Building to
eighteen(18) City facilities. This represents 57,000 linear feet of 12-strand fiber, and will
provide the infrastructure for any future City-owned and operated communication systems
(telephone and data).
2. TCI agrees to remove and reinstall the video equipment and cameras from the old Municipal
Building to the Council Chambers in the new location. Per separate mutual agreement, TCI
and the City will evaluate the existing equipment inventory prior to the relocation, and TCI
will provide certain additions to upgrade the City's cablecast system to meet current and
future needs.
3. TCI agrees to extend cable service to the new Municipal Building and assist in pre-wiring
efforts prior to occupancy in 1998; and extend cable to the Community Center/Carco
Theater, downtown Library,Highlands Library, and Fire Station No. 14.
4. TCI agrees to an annual equipment maintenance payment of$1500; and retroactive payment
of$2500 for 1995-1997.
Recommendation:
It is recommended that the City Council approve the recommendations outlined above, and
authorize execution of the agreement with TCI to extend the franchise requirements.
cc: Mayor Jesse Tanner
. Jay Covington •
CITY OF RENTON
MEMORANDUM
DATE: August 18, 1997
•
TO: Council President Kathy Keolker-Wheeler, and
Members,Renton City Council
FROM: Marilyn Petersen, City Clerk
SUBJECT: Executive Session- TCI Franchise Renegotiation Status
•
Background:
In August, 1993, the City Council adopted Ordinance No. 4412 which granted to TCI Cablevision a franchise
to operate a cable communication system'within the City of Renton. The franchise stipulated numerous
requirements, one of which was the completion of the fiber optic upgrade to fifty-four(54) channels by
September 13, 1997. The length of the franchise is from 9/13/93 through 9/13/2008.
Due to massive reorganization efforts by TCI in 1995-1996, cash flow problems, and resulting layoffs, TCI's
plans for County-wide rebuild projects fere delayed. However, in May, 1997,TCI announced that they were
going ahead with the fiber optic rebuild by committing $2.5 billion for upgrades nation-wide;with completion -
in King County scheduled forMay, 1999. TCI officials have contacted all franchise agencies, including the
City of Renton, to begin negotiation of franchise violations prior to 1997 default dates.
Franchise Violations: The following requirements were stipulated in the franchise agreement for completion
by 9/13/97:
1. Under Section 5, complete fiber optic upgrade of City system to 54 channels which has capability of
implementing certain enhanced services;
2. Under Section 5, provide, maintain, and operate a public access studio within a radius of eight miles of
Renton City Hall; and
3. Under Section 8, provide an interactive system with capability for institutional networks for educational
and public safety communications; and
4. Under Sections 3 and 11, provide cable service in the entire franchise area. (200 homes in Talbot Hill
area do not have Renton cable access but are paying cable franchise taxes to Renton.)
Franchise Penalties: $200 per day for each violation=$73,000 per year X 2 years=$146,000 per violation.
Four violations=$584,000.
TCI's Fiber Optic Proposal: 550 megahertz(band width)fiber to node cable system serving 600-1200
homes per node, and expanding the number of available channels to 54. The planning and design phase
should be completed by October, 1997,with project completion estimated within 18 months thereafter.
JF RENTON
..LL .( City Clerk
Jesse.Tanner,Mayor Marilyn J.Petersen
August 15, 1997
Gary Hokanson, General Manager •
TCI CABLEVISION OF WASHINGTON, INC.
15241 Pacific Highway South
Seattle, WA 98188
Re: TCI Franchise- City of Renton-Default Negotiations
Dear Gary:
•
During recent meetings held with representatives of City departments, staff identified future
development of a City-wide telecommunication network as one of its highest priorities. This goal
coincides with TCI's proposal to,provide in-kind services in lieu of monetary penalties for
franchise violations. By this letter, it is the City's intent to clarify its future needs and provide
your company with a reasonable and thoughtful proposal to accommodate the franchise violations
and avoid the imposition of penalties.
•
Regarding transmission of Renton government access programming to the Talbot Hill area, your
offer to install temporary utility poles in that area cannot be implemented since it would violate
existing City policies prohibiting overhead utilities in areas in which utilities have been
undergrounded.
In lieu of a finding of franchise default on the four issues we discussed at our July 24th meeting
and imposition of commensurate)penalties, the City proposes the following:
1. Provision of a separate fiber optic line, minimum twelve strand fiber(unless a greater
number of strands are indicated), to be separately hung or attached to TCI systems to the
following City facilities, connected to a hub located at the new Renton Municipal Building
(Main Avenue and Grady Way):
Leg 1: Fire Station 14;Renton School District Administration Building; Grady Way Park
&Ride Lot (surveillance)
Leg 2,: Fire Station 12;Highlands Library;North Highlands Neighborhood Center;
Highlands Neighborhood Center
Leg 3: Airport;Renton High School (optional);Parks Maintenance Building; Senior
Center;Burnett Avenue Transit Center(surveillance); City Attorney's office(100 S. 2nd)
Leg 4: City Shops; Community Center
Leg 5: Fire Station 11; downtown Library;Liberty Park Building(existing Municipal
campus) •
•
200 Mill Avenue South-Renton, Washington 98055 - (206)235-2501
®This paper contains 50%recycled material,20%post consumer
is • i
It is understood that TCI will be responsible for supplying and installing the specified fiber
only; all electronics required to put the system in operation shall be at the City's sole and
exclusive expense. The City will assume all financial responsibility for maintenance of the
City's fiber optic lines. e0.14A4e_
This proposal is conditioned on completion of construction within eighteen(18)months.
Should TCI fail, for any reason, to meet its obligation under this proposal, the City will
reserve its right to impose penalties backdated to September 13, 1997.
2. Removal and and reinstallation of video equipment and cameras from the existing Renton
Municipal Building to the new Municipal Building at Main and Grady Way.
3. Extension of cable service to Renton Municipal Building upon occupancy, and to the
Renton Community Center/Carco Theater, downtown Library,Highlands Library, and
Fire Station 14 within six(6) months. Assistance in prewiring new Renton Municipal
Building for cable service.
4. Assumption of annual maintenance costs for Council Chambers video equipment.
5. Contribution towards Channel 28 programming in the amount of$15,000.
It was the general consensus during discussions with staff and consultants that the proposed •
.separate fiber optic network provided by TCI to connect specified City facilities will enhance the
City's future communications infrastructure and is within reasonable range to be accomplished
concurrently with TCI's future rebuild project. Satisfaction of the remaining issues would fully
compensate the City for the potential franchise violations.
The City understands the circumstances which resulted in the delay of the local rebuild project,
and acknowledges your efforts to comply with franchise terms in the past. As we discussed in our
earlier meeting, there is some concern from our elected officials regarding prior programming
decisions and frequent area outages which you have recently corrected. If we can reach an
agreement on the aforementioned terms,we will meet in executive session with the Renton City
Council on Monday, August 18, 1997, and present the final proposal at the City Council
Committee of the Whole meeting Ion September 8, 1997.
If I can answer questions or provide additional information, please do not hesitate to call. We
look forward to your response following our meeting on August 15, 1997.
Very truly yours,
Marilyn . 'etersen
. City Clerk
cc:. Mayor Jesse Tanner
Jay Covington, Executive Assistant
Lawrence J. Warren, City Attorney
George McBride, Information Services Manager
Lon Hurd, 3H Cable Communications, Inc. •
J. R. Simmons, TMC
: .
•
TCI FRANCHISE RENEGOTIATION MEETING
July 23, 1997
LENGTH OF FRANCHISE: September 13, 1993 through September 13, 2008
DEADLINE FOR UPGRADE: September 13, 1997
VIOLATIONS:
A. Under Section 5, complete an upgrade of the City system to 54 channels that has the
capability of implementing certain enhanced services; and
B. Under Section 5, provide, maintain, and operate a public access studio within a radius of
eight miles of the Renton City Hall; and ,
C. Under Section 8, provide an interactive system to provid�tut aletworks for
educational and public safety communications; and .
D. Under Section 11, provide cable television service in the entire franchise area. (200 homes
near Valley Medical Center do not have Renton access.) (Cost: $80,000)
E. Under Section 7, ...maintain necessary equipment for local government cablecasting within
six(6) months of a request of the City unless extended by mutual written agreement.
PENALTIES: (Page 11)
$200 per day for each violation=$73,000 per year X 2 years= $146,000 per violation.
3 violations= $438,000
4 violations=$584,000
5 violations= $730,000
WHAT DOES RENTON WANT?
1. Separate fiber optic cable to be separately hung or attached to TCI systems, all connected
to a central utility pole(Renton Municipal Building)to specific City locations. (Value:
$1.5 million)
2. Removal and reinstallation of video equipment and cameras in new Municipal Building at
Main and Grady. (Value: less than$15,000)
3. Contribution towards Channel 28 programming. (Value: $15,000)
.
•
-- -- --__ __
. .
TCI's cable contract in Kent ... xtended • two more years:
•
By Matthew Erlich contract." exchange," said Council President TCI pays the city an annual franchise
Journal Reporter A spokesman for TCI did not return Christi Houser. fee. Last year, that amounted to about
repeated phone calls seeking comment. As part of the contract extension, $241,000 for Kent.
KENT---TCI won't get its cable tele- The city signed the initial franchise TCI agreedto install a fiber-optic cable Brubaker saidthe cable company
vision plug pulled in Kent despite one agreement with TCI in June 1993. In system linking three city fire stations, delayed construction in the face
council member's complaints that the exchange for a 15-year franchise, TCI the Kent jail and the city'smaintenance improving technology..He said new(', ._
company isn't meeting its franchise agreed within four years to increase the shops. The cost of the construction struction involving a network of regular
obligations. channel capacity to 54 from 36 and build won't be. added to the bills-of cable cable and fiber-optic lines could happen
Councilman Jim Bennett said the a public access studio within eight miles customers, Brubaker said. within 18 months.
cable television giant didn't meet its of Kent City Hall. .'Under the new agreement, the corn- "I think they very genuinely want to
obligations in a 4-year-old contract with The company faced a fine of$200 a pay will have an additional two years to deliver,"Brubaker said.
the city. In a 4-1 vote, Bennett was the day for not meeting the agreement. A meet its other obligations under the Bennett said council members made
only council member to oppose a two- lawsuit likely would have been neces- original contract, Brubaker added. the wrong decision.
year contract extension July 1. sary to consider ending the'franchise, TCI serves cities across South "I would have said,"You either live
"The citizens were promised more according to Tom Brubaker, assistant County.Rates vary by city,with viewers up to it or we no longer have a con-
channels and better service at the time city attorney. in Kent,for example, paying$11.61 for tract,'" Bennett said. "You can't let
we signed the franchise agreement," "We had two choices;we could either basic service and$12.41 for more chan- corporations trample all over you."
Bennett said."To me,they violated their fine them o r get some thing in nels under"extended basic"service.
4
/ 3
TCI
December 10, 1997
_;I i Y OF REh►TON
Sent Via Overnight Mail DEC 1 1 1991
Marilyn Peterson
City Clerk RECEIVED
City of Renton CITY CLERK'S OFFICE
200 Mill Avenue South •
Renton,WA 98055
RE: Extension Agreement;Equipment,Installation and Additions Agreement
Dear Marilyn:
I have enclosed two(2)partially executed originals of the aforementioned agreements for
City signatures. Upon full execution,please forward one original of each agreement to
Gary Hokenson,TCI Seattle System General Manager for our files.
Feel free to contact me at(425)462-2799 if you have any questions or comments
whatsoever.
Cordially,,,'?
tn.W J'e / v
anet L. Turpen
Regional Director of Franchising
jlt 6;71,C.1111;141.:)
/ `
Encl.
cc: Gary Hokenson
Piii3tofi
TCI West,Inc. 2233 112th Avenue NE
Bellevue,WA 98004
(425)462-2620
FAX(425)462-2853
An Equal Opportunity Employer
September 8. 1997 Renton City Council Minutes Page 288
KEOLKER-WHEELER, SECONDED BY CORMAN, COUNCIL REFER
THIS ITEM TO THE PLANNING & DEVELOPMENT COMMITTEE.
CARRIED.
OLD BUSINESS Council President Keolker-Wheeler presented a report recommending that
Committee of the Whole Council authorize the Administration to write a letter to the Suburban Cities
SCA: 1998 Legislative Association (SCA) recommending that the following issues be added to the
Issues SCA Legislative Agenda:
Infrastructure Financing:
Transportation Revenue Package
Economic Development Tools:
Funding for Urban Infrastructure
Brownfields
Expansion of Multi-Family Housing Property Tax
Hotel/Motel Tax Amendments.
MOVED BY KEOLKER-WHEELER, SECONDED BY NELSON, COUNCIL
CONCUR IN THE COMMITTEE REPORT. CARRIED.
Franchise: TCI Cable Council President Keolker-Wheeler presented a report regarding the TCI
Television Agreement franchise extension. In August of 1993, the City Council adopted Ordinance
No. 4412 which granted to TCI Cablevision a 15-year franchise to operate a
cable communication system within the City of Renton. The franchise
imposed numerous requirements, one of which was the completion of an
upgraded fiber optic cable system throughout the City which would expand
the number of available television channels to 54 by September 13, 1997.
TCI has requested a 24-month extension to September 13, 1999, to complete
the fiber optic rebuild and meet other requirements stipulated in the franchise
ordinance. In lieu of paying penalties, TCI has agreed to provide the
following in-kind considerations to the City of Renton in exchange for
extension of the franchise.
1. Within 24 months, TCI shall provide a separate City-owned fiber optic
cablle system connecting 18 City facilities to a hub located at the new
Municipal Building.
2. TCI shall remove and reinstall the video equipment and cameras from the
old Municipal Building to the Council Chambers in the new location, and
evaluate and enhance the existing cablecast system to accommodate
current and future needs.
3. TCI shall extend cable service to the new Municipal Building, both
libraries, the Community Center and the new Fire Training Center.
4. TCI shall provide an annual payment to the City to defray the cost of
video equipment maintenance.
The Committee of the Whole recommended approval of the proposed
agreement with TCI Cablevision as outlined above, and recommended that the
Mayor and City Clerk be authorized to execute the agreement to extend the
franchise requirements. MOVED BY KEOLKER-WHEELER, SECONDED
BY EDWARDS, CQUNCIL CONCUR IN THE COMMITTEE REPORT.
CARRIED.
Transportation: Downtown Council President Keolker-Wheeler presented a report regarding the transit
Transit Center Operational center operational scheme. Transportation Division staff, working in
Scheme conjunction with other City departments, have developed a preferred
operational scheme for the downtown Renton Transit Center. The preferred
{ APPROVED BY
COMMITTEE OF THE WHOLE CITY COUNCIL
COMMITTEE REPORT • ; Date 1? re---9
SEPTEMBER 8, 1997
TCI FRANCHISE EXTENSION
In August, 1993, the City Council adopted Ordinance No. 4412 which granted to TCI Cablevision
a 15-year franchise to operate a cable communication system within the City of Renton. The
franchise imposed numerous requirements, one of which was the completion of an upgraded fiber
optic cable system throughout the City which would expand the number of available television
channels to fifty-four(54)by September 13, 1997.
TCI has requested a 24-month extension to September 13, 1999,to complete the fiber optic
rebuild and meet other requirements stipulated in Ordinance No. 4412. In lieu of paying penalties,
TCI has agreed to provide the following in-kind considerations to the City of Renton in exchange
for extension of the franchise. :-
1. Within 24 months, TCI shall provide a separate City-owned fiber optic cable system
connecting eighteen City facilities toa hub located at the new Municipal Building.
2. TCI shall remove and reinstall the video equipment and cameras from the old Municipal •
Building to the Council Chambers in the new location, and evaluate and enhance the existing •
cablecast system to accommodate current and future needs.
3. TCI shall extend cable service to the new Municipal Building,both libraries, the Community
Center and the new Fire Training Center..
4. TCI shall provide an annual payment to the City to defray the cost of video equipment
maintenance. - ;
- Recommendation:
The Committee of the Whole recommends approval of the proposed agreement with TCI
Cablevision outlined above, and_recommends that the Mayor and City Clerk be authorized to
-_execute the agreement to extend the franchise requirements.
l/lJ
ouncil.Pre dent,Kathy Keolker-Wheeler
r1.Yi
yA,
AFFIDAVIT OF PUBLICATION
Kristina Thompson, being first duly sworn on oath states that he/she is the Legal Clerk of
the
SOUTH COUNTY JOURNAL
600 S. Washington Avenue, Kent, Washington 98032
a daily newspaper published seven (7)times a week. Said newspaper is a legal
newspaper of general publication and is now and has been for more than six months
prior to the date of publication, referred to, printed and published in the English language
continually as a daily newspaper in Kent, King County, Washington. The South County CITY OF RENTON
Journal has been approved as a legal newspaper by order of the Superior Court of the NOTICE OF TCI CABLE
State of Washington for King County.
PROPOSED RATE ADJUSTMENT
The notice in the exact form attached, waspublished in the South CountyThe City reof Renton isproposed currentlyyreviewingICal
the rate increases by TCI Cable
Journal (and not in supplemental form)which was regularly distributed to the subscribers for basic cable service. The FCC has
during the below stated period. The annexed notice, a established
l guidelineselifor
these
hwheserthe and
the Cityrats,atnd
conform with FCC limits. If rates are in
Notice of TCI Cable Proposed Rate Adjustment compliance with FCC guidelines, they will
•
be implemented by TCI on June,1, 1997.
Public written comments regarding the pro-
as published on: 5/23/97 posed rate increases will be accepted by
the City of Renton until June 6, 1997.
Please direct comments to City Clerk
The full amount of the fee charged for aid forego'.:_• publication is the sum of$22.46 Division, City of Renton, 200 Mill Avenue
Legal Number 3072 South,Renton WA 98055.
Published in the South County Journal
May 23, 1997.3072 e_
Legal CI-4",rSouth County Journal
Subscribed and sworn before me on this c day of )01\61-kr, 19 g7
t
�; , :_- = `{•'. 4o Notary Public of the State of Washington
��\�=;`;: �•_.._y f residing in Renton
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TCI
August 8, 1997 CITY OF REft1TON
AUG 1 1 1997
The Honorable Jesse Tanner
Mayor, City of Renton RECEIVED 200 Mill Avenue South CITY CLERK'S OFFICE
Renton,WA 98055
Dear Mayor Tanner and Members of the City Council:
I am writing to alert you to programming changes that TCI of Washington will be
making to comply with federal must carry requirements and to bring a new broadcast
station, KONG, to our customers cn September 11, 1997.
You may be aware that KONG, which is managed by KING TV, launched its new station
in the Seattle market last month and is featuring classic network reruns from the 1950s
through 1980s. Under a provisionof the 1992 Cable Act, a local broadcaster is entitled to
require a local cable operator to retransmit its signal and TCI intends to retransmit
KONG on channel 6 in its cable systems throughout the Puget Sound region, beginning
in September.
As you know, TCI's cable system is at full capacity. The company's ability to add
programming is limited by national contracts, the carriage rules described above and by
local government requirements for public, educational and governmental access
channels. In order to accommodate KONG, we must drop services and change our
channel line-up.
In City of Renton, we will make the following changes:
• KONG will premiere on channel 6.
• Discovery Channel will move to channel 3.
• Univision/BET will move to channel 40.
• Sega Channel will no longer be carried.
• The Sega Channel is a service;delivering video games through a subscribers' cable
lines and into Sega Genesis game consoles. The decision to discontinue Sega is due in
part to the smaller number of;subscribers-fewer than 1% of our customers-who will
be impacted by the change.
TCI of Washington South Seattle Office
15241 Pacific Hwy.So.
Seattle,WA 98188
(206)433-3434
FAX(206)433-5103
An Equal Opportunity Employer
We sent a notice to our customers notifying them of these changes. If you have any
questions about TCI's new channel line-up, please don't hesitate to call me at 433-3434.
Thank you.
Sincerely,
Gary A. okenson
General Manager
_ cc: Lon Hurd
Marilyn Petersen -
Nor ie 56N-r TO & r®441 5
TC1
•
Dear Customer:
You may have heard that a new,local broadcast television station,KONG channel 16,launched in the Seattle
area on July 7, 1997.The station is managed by KING-TV and features reruns of popular network programs
from the 1950s through the 1980s.We are writing you to let you know that TCI will be carrying KONG in
our Western Washington cable systems starting in September.
In 1992,Congress passed the Cable Act,which contained a provision requiring that cable systems"must
carry"any local,"over-the-air"broadcast station that meets certain technical criteria.If you take a look at
your cable channel line-up,you will notice that TCI carries between 8 and 11 of these stations(depending on
where you live).In addition,cable companies like TCI are often required to carry certain other channels like
public,educational,government and leased access channels.All of this significantly reduces the remaining
"shelf space"on our cable systems.
We recognize that programming and line-up changes can be frustrating.We want to assure you that we are
takingevery step necessary to make the best decisions about how to put KONG on TCI's cable system.We
need to minimize impact upon both you,our customer,and our business,however,it is more than likely that
we will have to move some channels to accommodate the launch of KONG.
(continued on reverse side) 021-XX/6228 797
In addition,there is a limit to the number of channels that can be carried on our cable system;however,TCI
is working towards creating technological solutions to these channel capacity limitations.In the mean time,
given the demands placed upon us by law,we have no choice but to discontinue carrying some existing
programming to open one•channel space to launch KONG.This is never an easy decision and ultimately
disappoints some of our customers but we want you to know that we DO NOT take this decision lightly.We
will employ a fair and honest process to make this choice.As part of our decision making,we will look at
which channels have the fewest viewers(Nielsen ratings)and also hire an independent firm to scientifically
survey our customers.
We at TCI truly want you to be a satisfied customer but also want you to recognize the constraints we are
under which we operate.We understand that TCI's channel line-up is critical to your viewing pleasure.We
will make every effort to make the transition in September as smooth as possible so that we may bring you
KONG.We will keep you informed as we go through the decision making process.If you have questions,
please feel free to call your TCI Customer Service representative.
We do appreciate your understanding through these changes and hope you will enjoy Seattle's newest
broadcast station.
Sincerely,
Bill Bennett
Regional Vice President 6228