HomeMy Public PortalAbout2001 Memorandum from Weiss, Serota, Helfman, Pastoriza, GuedesMemorandum
To: Honorable Mayor and Village Council Members, Village of Key Biscayne
Cc:
Sam Kissinger, Village Manager
Richard Jay Weiss, Village Attorney
David M. Wolpin, Village Attorney
From: Gary Resnick, Village Attorney
Date: October 1, 2001
Re: Cable License Agreement with Adelphia Cable Communications
This Memorandum summarizes the key terms of the proposed Cable License Agreement as
a result of negotiations with Adelphia Cable Communications ("Adelphia").
• Operations and Customer Service Requirements — With respect to
technical operations and customer service requirements, Adelphia must
comply with the detailed requirements of the Miami -Dade County Cable
Ordinance that the County amended this year.
• Term — this is a non-exclusive Agreement for ten (10) years.
• insurance and Indemnification — Adelphia shall obtain insurance that names
the Village as an additional insured and file proof of insurance with the
Village. Adelphia shall indemnify the Village for all claims arising out of its
operations.
• Service to Public Facilities — Adelphia shall provide one cable outlet for free
to each floor of all government buildings and schools. Adelphia shall also
provide without charge, one cable modem and unlimited access to its cable
modem service to all schools and libraries within the Village.
• Municipal Access Channels and Support — Adelphia shall continue to make
channel 99 available to the Village for its sole use for public, educational, and
government access programming. Within 6 months, Adelphia shall provide
the Village with a second access channel for the Village's use. The Village
shall be capable of transmitting live programming, including live coverage of
Village Council meetings, from Village Hall. If the Village uses the first two
access channels, the Village may obtain additional access channels.
Within 60 days, Adelphia shall pay the Village a one-time payment of
$10,000 to support programming on the PEG channels. Adelphia has agreed
not to pass the costs of this payment through' to its subseribers. In addition,
Adelphia shall provide the Village $.50 per subscriber per year until October
1, 2003, and thereafter $1.00 per subscriber per year to support the Village's
use of its access channels. The $.50 and $1.00 per year payments are the same
amounts Adelphia agreed to pay Miami -Dade Comity to support the County's
access channels. To determine the'nuinber of subscribers for purposes of this
payment, Adelphia shahcount all individual units within multiple dwellings.
In other words, a condominium building with 50 units will count as 50
subscribers. Presently, there are approximately.5,000 subscribers within the
Village. Over the term of the Agreement, this amounts to approximately
$55,000 in financial support for the access channels.
• Compensation and Cost Recovery -- Under the new Florida
Communications Tax Law, commencing in October 2001, Adelphia will pay
the Village the rate of 5.62% of gross revenue as defined under State law, and
commencing October 2002, the rate of 5.22%. Adelphia will pay this tax to
the Florida Department of Revenue, which will distribute the tax to the
Village on a monthly basis. In the event this State tax is no longer applicable,
Adelphia will pay to the Village the maximum license fee allowed under law,
_ which is currently 3% of gross revenue.
Adelphia will pay the costs incurred by the Village, up to $7,500, in
connection with the preparation of this Agreement.
• Transfer of License Agreement — Adelphia must obtain the Village's consent
prior to transferring the License. Adelphia will pay the costs incurred by the
Village, up to $5,000, in connection with reviewing a transfer request.
103041/AdelphiaCableMemo