RES 2011-0589 - Provide Cox Communications Omaha LLC with written notice that Cox has failed to comply with terms of agmt (not adopted) �tAAHA,Ned
;�� `, RECEIVED Law Department
Omaha/Douglas Civic Center
® � «(`t F I 1 MAY -3 AM 9: 12 1819 Farnam Street,Suite 804
Omaha,Nebraska 68183-0804
�Ao 4ti r CLERK (402)444-5115
TfD FEBO'' Vs
s,; { Telefax(402)444-5125
CityofOmaha OH ' tlSttr¢� w '4
Paul D.Kratz
Jim Suttle,Mayor City Attorney
Honorable President
and Members of the City Council,
The attached Resolution is submitted by the Law Department. The Resolution directs the Law
Department to notify Cox Communications Omaha, LLC., of noncompliance with a portion of the
cable television franchise and obtain Cox's plan to cure the defect or otherwise demonstrate
compliance.
During the City's negotiation with Cox about renewing the cable television franchise,an extensive
review was conducted of all outstanding provisions of the present franchise agreement. In particular,
discussions focused on whether a provision in the original cable television franchise agreement that
was also referenced in subsequent amendments had been adequately performed.
In its 1980 bid to get the Omaha cable television franchise,Cox promised to provide an"institutional
network"that could allow the cable system to "provide services beyond pure entertainment." Cox
said that"a properly designed cable system can also function as a point-to-point network,capable of
providing interactive communications to municipal buildings,educational centers,hospitals,medical
facilities, libraries and local commercial outlets." The promised institutional network, commonly
known as the `B" cable system, was to be comprised of at least 150 miles of cable connecting a
minimum of 80 public and private locations. The many beneficial uses that Cox expressly promised
included an ability for the Public Works Department to "monitor and control all traffic signals as
well as video monitoring of traffic patterns and conditions at various locations throughout the city."
A copy of page 17 of Cox's initial cable television proposal with Cox's description of the`B"cable,
which has long been incorporated into the franchise agreement,is attached for your review. The`B"
cable obligation was then referenced in contract amendments through 1984 and referenced in
correspondence with Cox throughout the 1990's. Although many of the functions described in 1980
can now be achieved with the internet,because the`B"cable is dedicated for public use at limited
expense the described uses may still provide benefit to the City and its citizens with a cost savings.
The renewal negotiations determined that there is not an existing institutional network available for
use by the public as required by the franchise agreement. Disagreement exists on whether the`B"
cable was ever constructed or made operational and, if so, was it offered for City use or was it
available solely to Cox for its commercial purposes. An extensive search of City records and Cox's
records finds no documentation that City staff believes demonstrates Cox fully complied with the
franchise agreement's requirements for the"B"cable.
Attestation Form,available on the Department of
Administrative Services website at:www.das.state.ne.us.
2. If the Contractor indicates on such attestation form that he or she is a qualified alien,the Contractor agrees to provide the
US Citizenship and Immigration Services documentation require to verify the Contractor's lawful presence in the United States
using the Systematic Alien Verification for Entitlements(SAVE)Program.
3.The Contractor understands and agrees that lawful presence in the United States is required and the Contractor may be
disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb.Rev.Stat.§4-108.
•
•
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• MATERI L 'MI ST-`4
•
3 (O1 Y%1423
.... .L,..::� •.�s
• Nn Cita C.e.5(6 r.5
•
•
•
**New for this model year • •=Available
-16- Ford Division
16,000 - - . 16,000 15,700 15,800 - - - • -
•
3.73 30,000 - - 2Z600 22,100 - - - 22,100 , 21,500 - - - 21,800 21,300 - ;.
430 33,000 - - - - - - - - - - - - - -
24,400 •
tiotc$ -This information also applies to models with Pickup Box Debts option(661)).
•For F-2501F350 SRW models,F-250 trailer weights are shown.F-350 trailer weights are w40tin 200 pounds.Check with your sales consultant
•IFaier tongue(trailer king pin for 5th-wheel towing)toad weight should be 10-15%(15-25%for 5th-wheel towing)of total loaded trailer weigh.Make sure vehicle payload(reduce c 1
by option weight)will accommodate trailer tongue(trailer king pin for 5t-wheel towing)toad weight and weight of passengers and cargo added to towing vehicle.Addftion of trailer
tongue(trailer king pin for 5th-w hee towing)bad might and weight of passengers and cargo cannot cause vehkia weights to exceed rear GAWR or GVNR.these ratings can be •
found on the rebide Safety Compience Certification Label.
TailgateClearance Considerations When Towing a 5th-Wheel or Gooseneck Trailer
- E:
Model F 16O s''.. ..:F-250`. . ' F:350 SFt}'d _F-35D ORW F 450 DRW Note VehideswAtlk otherconf�urallons • 1:
.. ' ._ may have varying tailgate heights.
Max.Tailgate RV 56-60inches 56-57holies 59-60inches 56-57inches 56-57frxites '17istaie barn g to top ddosedBale, z'
i;
.. 0 Mebfc Con eisian-To obtain u foollatian hi kilograms,multiply pounds by AS;to obtain bdokmatm hi centimeters,multiply inches by 2.54. i'
1=.
Honorable President
and Members of the City Council
Page 2
The franchise agreement requires that if the City believes the agreement has not been fulfilled,and
the parties are unable to resolve the alleged breach, certain enforcement procedures must be
followed. This resolution satisfies those requirements and preserves this issue for continued
discussion as we approach the end of the franchise term.
The resolution does not impose any immediate sanction on Cox. Any decision about sanctions
would be made by the Council after appropriate notice and public hearing giving Cox an opportunity
to present its position before the City Council.
Your favorable consideration is requested.
Respect y s miffed:
T omas O. Mumgaard ct-(e
Deputy City Attorney
p:\law—city council documents\2011\50037s1w.doc
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Cox Cable of Omaha,Inc.guarantees the established rites will remain in effect for a
minimum of three years from the date the first subscriber is served. 0 •
OPTIONS CIF • NUMBER OF MONTHLY .' INSTALLATION
/. SERVICE . CHANNELS RATE CHARGES .
• TIER I_ •
Life Line • 17 No Charge $25.00- •
TIER II. 28* $5.95 $15.00**
TIbRIII ; 54* $7.50 $15.00**
TIER IV 54+12 text' • $8.50 • $20.00** •
• TIER V 54 +54 text* $10.95 $25.00** .
+Interactive •
•
• Services ••
* The pay movie packages outlined below are available to Tier II, III,IV,and V subscribers
for an additional charge. •
** Subscriber installation charges are normally waived during the system's early
construction period and may be waived or reduced thereafter.
• ***INSTALLATION
PAY SERVICES ' . MONTHLY RATE CHARGES '
•
Home.Box Office(HBO) • $6.95 • $15.00
• Showtime $6.95 $15.00
'lake 2 • $3.95. $15.00 • .
Upon request,a parental"lock-out"device will be provided to all pay service subscribers•
• free of charge. '
*** The installation fees for pay services apply only when the service is added to existing
cable service. The'pay installation fee is waived when the pay service is subscribed to at • •
,-- the same time as the basic cable service.
Institutional Services •Public Works monitoring of'district
yards,sewer treatment facilities and the • '
' In recent years as cable technology sewer maintenance facility.
? has grown more sophisticated and pro- ' •Providing the judicial system.With the
gramming services have increased,an ex- ability to interconnect all buildings for
1 panded awareness of cable's potential to data processing purposes. . • •
i provide services beyond pure entertain- •'Ibleconferencing between various gov- •
1 ment has been recognized;'lbday,a properly ernmental departments.
• designed cable system can also function •Allowing the'lYaffic Department of the
as a pointvto-point network,capable of City of Omaha to monitor and control all
'providing interactive communications to traffic signals as well as video ,
municipal buildings,educational centers, monitoring of traffic,patterns and
hospitals,medical facilities,libraries and conditions at various locations
local'comrnercial'outlets.Cox Cable of throughout the city. 17
Omaha will provide a separate"B"cable •Providing an audio/visual link between
or institutional network solely for this the Downtown Conference Center and
purpose. ' • ' the University of Nebraska.
The"B".cable system,comprised of •Following approval from designated
150 miles of cable,connecting a minimum authorities,a video link between one or
of 80 locations,all public and private more courtrooms and the Creighton
schools and all traffic Signals within • University School of Law may be estab-
Omaha will provide such.services as: lished for educational purposes.
•Establishing a network of'hospitals and •The Doody Zoo will have the capability
medical centers enabling various loca- to access and consult Other veterinarians
tions to share guest lectures;in-service and medical personnel in Omaha.
{• training and continuing medical educe- *Providing many of the interconnect
tion courses; . ' . . • capabilities requested by Creighton Uni-'•
• •Monitoring twenty-five of Omaha's water ' versity to various downtown facilities. 0
and three gas locations.
t be verified as required by Neb.Rev.Stat.§4-108.
•
•
OYAM1)
Off
• MATERI L 'MI ST-`4
•
3 (O1 Y%1423
.... .L,..::� •.�s
• Nn Cita C.e.5(6 r.5
•
•
•
**New for this model year • •=Available
-16- Ford Division
16,000 - - . 16,000 15,700 15,800 - - - • -
•
3.73 30,000 - - 2Z600 22,100 - - - 22,100 , 21,500 - - - 21,800 21,300 - ;.
430 33,000 - - - - - - - - - - - - - -
24,400 •
tiotc$ -This information also applies to models with Pickup Box Debts option(661)).
•For F-2501F350 SRW models,F-250 trailer weights are shown.F-350 trailer weights are w40tin 200 pounds.Check with your sales consultant
•IFaier tongue(trailer king pin for 5th-wheel towing)toad weight should be 10-15%(15-25%for 5th-wheel towing)of total loaded trailer weigh.Make sure vehicle payload(reduce c 1
by option weight)will accommodate trailer tongue(trailer king pin for 5t-wheel towing)toad weight and weight of passengers and cargo added to towing vehicle.Addftion of trailer
tongue(trailer king pin for 5th-w hee towing)bad might and weight of passengers and cargo cannot cause vehkia weights to exceed rear GAWR or GVNR.these ratings can be •
found on the rebide Safety Compience Certification Label.
TailgateClearance Considerations When Towing a 5th-Wheel or Gooseneck Trailer
- E:
Model F 16O s''.. ..:F-250`. . ' F:350 SFt}'d _F-35D ORW F 450 DRW Note VehideswAtlk otherconf�urallons • 1:
.. ' ._ may have varying tailgate heights.
Max.Tailgate RV 56-60inches 56-57holies 59-60inches 56-57inches 56-57frxites '17istaie barn g to top ddosedBale, z'
i;
.. 0 Mebfc Con eisian-To obtain u foollatian hi kilograms,multiply pounds by AS;to obtain bdokmatm hi centimeters,multiply inches by 2.54. i'
1=.
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS,Cox Communications Omaha,LLC("Cox"),currently operates a cable
television system to provide cable television service in the City of Omaha("City")that was awarded
pursuant to a franchise application proforma("the Proposal")and is operated in accordance with a
franchise agreement between Cox and the City that includes Amendment A,accepted on August 23,
1983 ("the Agreement");.and,
WHEREAS, the Proposal and the Agreement include detailed requirements for the
construction and full activation of an Institutional Network,commonly known as the"B cable,"to be
installed at City owned facilities as specified in the Proposal and the Agreement.
WHEREAS, based on the information presently available to the City, there is no
functioning Institutional Network now in existence in the City in compliance with the specifications
of the Agreement; and,
WHEREAS, City staff and others have,during the past several months,extensively
discussed with Cox whether the requirement for a functioning Institutional Network has been met
and Cox has indicated,its disagreement with the City's position; and,
WHEREAS, the Agreement provides that if the City believes that a breach of the
Agreement has occurred, and the parties are unable to resolve the alleged breach, specific
enforcement procedures may be followed by the City, including providing Cox with notice and an
opportunity to cure before the City pursues any remedies available under the Agreement,including
the assessment of liquidated damages.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
gramming services have increased,an ex- ability to interconnect all buildings for
1 panded awareness of cable's potential to data processing purposes. . • •
i provide services beyond pure entertain- •'Ibleconferencing between various gov- •
1 ment has been recognized;'lbday,a properly ernmental departments.
• designed cable system can also function •Allowing the'lYaffic Department of the
as a pointvto-point network,capable of City of Omaha to monitor and control all
'providing interactive communications to traffic signals as well as video ,
municipal buildings,educational centers, monitoring of traffic,patterns and
hospitals,medical facilities,libraries and conditions at various locations
local'comrnercial'outlets.Cox Cable of throughout the city. 17
Omaha will provide a separate"B"cable •Providing an audio/visual link between
or institutional network solely for this the Downtown Conference Center and
purpose. ' • ' the University of Nebraska.
The"B".cable system,comprised of •Following approval from designated
150 miles of cable,connecting a minimum authorities,a video link between one or
of 80 locations,all public and private more courtrooms and the Creighton
schools and all traffic Signals within • University School of Law may be estab-
Omaha will provide such.services as: lished for educational purposes.
•Establishing a network of'hospitals and •The Doody Zoo will have the capability
medical centers enabling various loca- to access and consult Other veterinarians
tions to share guest lectures;in-service and medical personnel in Omaha.
{• training and continuing medical educe- *Providing many of the interconnect
tion courses; . ' . . • capabilities requested by Creighton Uni-'•
• •Monitoring twenty-five of Omaha's water ' versity to various downtown facilities. 0
and three gas locations.
t be verified as required by Neb.Rev.Stat.§4-108.
•
•
OYAM1)
Off
• MATERI L 'MI ST-`4
•
3 (O1 Y%1423
.... .L,..::� •.�s
• Nn Cita C.e.5(6 r.5
•
•
•
**New for this model year • •=Available
-16- Ford Division
16,000 - - . 16,000 15,700 15,800 - - - • -
•
3.73 30,000 - - 2Z600 22,100 - - - 22,100 , 21,500 - - - 21,800 21,300 - ;.
430 33,000 - - - - - - - - - - - - - -
24,400 •
tiotc$ -This information also applies to models with Pickup Box Debts option(661)).
•For F-2501F350 SRW models,F-250 trailer weights are shown.F-350 trailer weights are w40tin 200 pounds.Check with your sales consultant
•IFaier tongue(trailer king pin for 5th-wheel towing)toad weight should be 10-15%(15-25%for 5th-wheel towing)of total loaded trailer weigh.Make sure vehicle payload(reduce c 1
by option weight)will accommodate trailer tongue(trailer king pin for 5t-wheel towing)toad weight and weight of passengers and cargo added to towing vehicle.Addftion of trailer
tongue(trailer king pin for 5th-w hee towing)bad might and weight of passengers and cargo cannot cause vehkia weights to exceed rear GAWR or GVNR.these ratings can be •
found on the rebide Safety Compience Certification Label.
TailgateClearance Considerations When Towing a 5th-Wheel or Gooseneck Trailer
- E:
Model F 16O s''.. ..:F-250`. . ' F:350 SFt}'d _F-35D ORW F 450 DRW Note VehideswAtlk otherconf�urallons • 1:
.. ' ._ may have varying tailgate heights.
Max.Tailgate RV 56-60inches 56-57holies 59-60inches 56-57inches 56-57frxites '17istaie barn g to top ddosedBale, z'
i;
.. 0 Mebfc Con eisian-To obtain u foollatian hi kilograms,multiply pounds by AS;to obtain bdokmatm hi centimeters,multiply inches by 2.54. i'
1=.
• • ,
C-25A
CITY OF OMAHA
,
LEGISLATIVE CHAMBER
I :
i .
Omaha,Nebraska • ,
Page 2
THAT,the City Attorney or his designee is hereby authorized and directed.to provide
,
Cox Communications Omaha,LLC,with written notice that Cox has failed to comply with the terms ;
of its cable television franchise agreement by failing to provide to the City a functioning:Institutional ,
: Network and providing Cox a reasonable opportunity to cure the defect or otherwise demonstrate
• compliance.
APP E AS TO FORM:
DEPUTY CI Y TORNEY DATE
Olaw—city council documents\2011\50038s1w.doc
By 9447 Pgett4244444
Councilmember ,z .
Adopted- MAY 1 0 2011, - 144.4...e :1 e/ec.50/Ce :01,7 lead 2°67-4"
yew; iirom,50 ) 0;ifi (- 3/1/2';' id
City Clerk AjayS; /-1a5. 1
Se4 eivain./14 "QA °
Approved
Mayor
months,extensively
discussed with Cox whether the requirement for a functioning Institutional Network has been met
and Cox has indicated,its disagreement with the City's position; and,
WHEREAS, the Agreement provides that if the City believes that a breach of the
Agreement has occurred, and the parties are unable to resolve the alleged breach, specific
enforcement procedures may be followed by the City, including providing Cox with notice and an
opportunity to cure before the City pursues any remedies available under the Agreement,including
the assessment of liquidated damages.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
gramming services have increased,an ex- ability to interconnect all buildings for
1 panded awareness of cable's potential to data processing purposes. . • •
i provide services beyond pure entertain- •'Ibleconferencing between various gov- •
1 ment has been recognized;'lbday,a properly ernmental departments.
• designed cable system can also function •Allowing the'lYaffic Department of the
as a pointvto-point network,capable of City of Omaha to monitor and control all
'providing interactive communications to traffic signals as well as video ,
municipal buildings,educational centers, monitoring of traffic,patterns and
hospitals,medical facilities,libraries and conditions at various locations
local'comrnercial'outlets.Cox Cable of throughout the city. 17
Omaha will provide a separate"B"cable •Providing an audio/visual link between
or institutional network solely for this the Downtown Conference Center and
purpose. ' • ' the University of Nebraska.
The"B".cable system,comprised of •Following approval from designated
150 miles of cable,connecting a minimum authorities,a video link between one or
of 80 locations,all public and private more courtrooms and the Creighton
schools and all traffic Signals within • University School of Law may be estab-
Omaha will provide such.services as: lished for educational purposes.
•Establishing a network of'hospitals and •The Doody Zoo will have the capability
medical centers enabling various loca- to access and consult Other veterinarians
tions to share guest lectures;in-service and medical personnel in Omaha.
{• training and continuing medical educe- *Providing many of the interconnect
tion courses; . ' . . • capabilities requested by Creighton Uni-'•
• •Monitoring twenty-five of Omaha's water ' versity to various downtown facilities. 0
and three gas locations.
t be verified as required by Neb.Rev.Stat.§4-108.
•
•
OYAM1)
Off
• MATERI L 'MI ST-`4
•
3 (O1 Y%1423
.... .L,..::� •.�s
• Nn Cita C.e.5(6 r.5
•
•
•
**New for this model year • •=Available
-16- Ford Division
16,000 - - . 16,000 15,700 15,800 - - - • -
•
3.73 30,000 - - 2Z600 22,100 - - - 22,100 , 21,500 - - - 21,800 21,300 - ;.
430 33,000 - - - - - - - - - - - - - -
24,400 •
tiotc$ -This information also applies to models with Pickup Box Debts option(661)).
•For F-2501F350 SRW models,F-250 trailer weights are shown.F-350 trailer weights are w40tin 200 pounds.Check with your sales consultant
•IFaier tongue(trailer king pin for 5th-wheel towing)toad weight should be 10-15%(15-25%for 5th-wheel towing)of total loaded trailer weigh.Make sure vehicle payload(reduce c 1
by option weight)will accommodate trailer tongue(trailer king pin for 5t-wheel towing)toad weight and weight of passengers and cargo added to towing vehicle.Addftion of trailer
tongue(trailer king pin for 5th-w hee towing)bad might and weight of passengers and cargo cannot cause vehkia weights to exceed rear GAWR or GVNR.these ratings can be •
found on the rebide Safety Compience Certification Label.
TailgateClearance Considerations When Towing a 5th-Wheel or Gooseneck Trailer
- E:
Model F 16O s''.. ..:F-250`. . ' F:350 SFt}'d _F-35D ORW F 450 DRW Note VehideswAtlk otherconf�urallons • 1:
.. ' ._ may have varying tailgate heights.
Max.Tailgate RV 56-60inches 56-57holies 59-60inches 56-57inches 56-57frxites '17istaie barn g to top ddosedBale, z'
i;
.. 0 Mebfc Con eisian-To obtain u foollatian hi kilograms,multiply pounds by AS;to obtain bdokmatm hi centimeters,multiply inches by 2.54. i'
1=.
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ty believes that a breach of the
Agreement has occurred, and the parties are unable to resolve the alleged breach, specific
enforcement procedures may be followed by the City, including providing Cox with notice and an
opportunity to cure before the City pursues any remedies available under the Agreement,including
the assessment of liquidated damages.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
gramming services have increased,an ex- ability to interconnect all buildings for
1 panded awareness of cable's potential to data processing purposes. . • •
i provide services beyond pure entertain- •'Ibleconferencing between various gov- •
1 ment has been recognized;'lbday,a properly ernmental departments.
• designed cable system can also function •Allowing the'lYaffic Department of the
as a pointvto-point network,capable of City of Omaha to monitor and control all
'providing interactive communications to traffic signals as well as video ,
municipal buildings,educational centers, monitoring of traffic,patterns and
hospitals,medical facilities,libraries and conditions at various locations
local'comrnercial'outlets.Cox Cable of throughout the city. 17
Omaha will provide a separate"B"cable •Providing an audio/visual link between
or institutional network solely for this the Downtown Conference Center and
purpose. ' • ' the University of Nebraska.
The"B".cable system,comprised of •Following approval from designated
150 miles of cable,connecting a minimum authorities,a video link between one or
of 80 locations,all public and private more courtrooms and the Creighton
schools and all traffic Signals within • University School of Law may be estab-
Omaha will provide such.services as: lished for educational purposes.
•Establishing a network of'hospitals and •The Doody Zoo will have the capability
medical centers enabling various loca- to access and consult Other veterinarians
tions to share guest lectures;in-service and medical personnel in Omaha.
{• training and continuing medical educe- *Providing many of the interconnect
tion courses; . ' . . • capabilities requested by Creighton Uni-'•
• •Monitoring twenty-five of Omaha's water ' versity to various downtown facilities. 0
and three gas locations.
t be verified as required by Neb.Rev.Stat.§4-108.
•
•
OYAM1)
Off
• MATERI L 'MI ST-`4
•
3 (O1 Y%1423
.... .L,..::� •.�s
• Nn Cita C.e.5(6 r.5
•
•
•
**New for this model year • •=Available
-16- Ford Division
16,000 - - . 16,000 15,700 15,800 - - - • -
•
3.73 30,000 - - 2Z600 22,100 - - - 22,100 , 21,500 - - - 21,800 21,300 - ;.
430 33,000 - - - - - - - - - - - - - -
24,400 •
tiotc$ -This information also applies to models with Pickup Box Debts option(661)).
•For F-2501F350 SRW models,F-250 trailer weights are shown.F-350 trailer weights are w40tin 200 pounds.Check with your sales consultant
•IFaier tongue(trailer king pin for 5th-wheel towing)toad weight should be 10-15%(15-25%for 5th-wheel towing)of total loaded trailer weigh.Make sure vehicle payload(reduce c 1
by option weight)will accommodate trailer tongue(trailer king pin for 5t-wheel towing)toad weight and weight of passengers and cargo added to towing vehicle.Addftion of trailer
tongue(trailer king pin for 5th-w hee towing)bad might and weight of passengers and cargo cannot cause vehkia weights to exceed rear GAWR or GVNR.these ratings can be •
found on the rebide Safety Compience Certification Label.
TailgateClearance Considerations When Towing a 5th-Wheel or Gooseneck Trailer
- E:
Model F 16O s''.. ..:F-250`. . ' F:350 SFt}'d _F-35D ORW F 450 DRW Note VehideswAtlk otherconf�urallons • 1:
.. ' ._ may have varying tailgate heights.
Max.Tailgate RV 56-60inches 56-57holies 59-60inches 56-57inches 56-57frxites '17istaie barn g to top ddosedBale, z'
i;
.. 0 Mebfc Con eisian-To obtain u foollatian hi kilograms,multiply pounds by AS;to obtain bdokmatm hi centimeters,multiply inches by 2.54. i'
1=.
e oy:
May 9,2011
OMAHA CITY COUNCIL
Re: Cox Communications I-Net Obligation
Item No.41 On May 10, 2011 Agenda
Honorable City Council Members:
I read with interest the report prepared by Deputy City Attorney Thomas O.
Mumgaard concerning Item No.41 on the Council's May 10,2011 Agenda. The report was
issued in conjunction with a Resolution to authorizing the City Attorney "to provide Cox
Communications Omaha,LLC, with written notice that Cox has failed to comply with the
terms of its cable television franchise agreement by failing to provide to the City a
functioning Institutional Network and providing Cox a reasonable opportunity to cure the
defect or otherwise demonstrate compliance." Mr. Mumgaard's report provides one view of
the disagreement between the City staff and Cox. I thought you would appreciate hearing the
complete story:
Mr. Mumgaard is correct that in its original 1980 Proposal to build and operate a
cable system in Omaha, Cox proposed building an Institutional Network consisting of150-
miles of coaxial cables and other electronics, called the"B-Line." (1980 Proposal,Executive
Summary,page 17 and Form I,page 10). Mr. Mumgaard leaves out two significant facts
from his report:
• In 1983, Cox and the City signed Addendum A to the Franchise Agreement,
which further refined the B-Line obligation. City and Cox agreed to a process
where the City could test the system and determine whether it will "use all or
part of the system or channels." The City agreed to"exercise its options"to
use the B-Line"within a reasonable time following the effective date of the
Addendum,or when otherwise may be appropriate." (Addendum, Section
7(c)(v)and (vii)). To Cox's knowledge,the City never exercised its option
and I think you would agree that exercising the option nearly 30 years later is
neither reasonable nor appropriate.
• In 1991,Cox applied for the renewal of its Franchise Agreement and notified
the City that it had build 239 miles of B-Line,of which 23 miles were then in
use. (Renewal Application,Form F,page 5).
Omaha City Council
May 9, 2011
Page 2
In summary, it was the City's responsibility to test the B-Line network and notify Cox
within a reasonable time whether it intended to use it. It was not, as Mr. Mumgaard states,
Cox's responsibility that it be "offered for City use"by Cox. And the 1991 Renewal
Application is clear evidence that the City was put on notice not only had Cox built the B. •
Line,but it had built a significantly larger network than originally proposed.
Cox is confident that it can show not only that it complied with its obligations under
the Franchise Agreement,but that any failure by the City to use the B-Line network is the
result of inaction by the City staff and cannot be placed at Cox's feet. We regret that the City
has chosen to raise this issue in the waning months of a 30-year contractual relationship.
Cox will vigorously defend itself from this allegation and ensure that that its position is
clearly heard.
Should you have any questions,please do not hesitate to contact me.
Very truly yours,
Jay.Allbaugh
Vice President—Public &Government Affairs
Cox Communications—Central Region
V i
cc: Kermit Brashear,Esq.
Michael McI. Grover,Cox.Communications, Inc.
John Barrett,Cox Communications -Omaha
Cox Ci n ittunieati;+tix.lnc. ^I 1 115 Wtct DoLlge Ro:kl(Oin:ilta;NE '6N15.11 kv,,%w cm.ca�itt
e system and determine whether it will "use all or
part of the system or channels." The City agreed to"exercise its options"to
use the B-Line"within a reasonable time following the effective date of the
Addendum,or when otherwise may be appropriate." (Addendum, Section
7(c)(v)and (vii)). To Cox's knowledge,the City never exercised its option
and I think you would agree that exercising the option nearly 30 years later is
neither reasonable nor appropriate.
• In 1991,Cox applied for the renewal of its Franchise Agreement and notified
the City that it had build 239 miles of B-Line,of which 23 miles were then in
use. (Renewal Application,Form F,page 5).
•
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