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Home My WebLink About2007-01-10 e-packet AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, JANUARY 10,2007 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meeting of the Redevelopment Agency is held on the second Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances ). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. RICHARD A. GARBARINO, SR. Chair PEDRO GONZALEZ Vice Chair MARK N. ADDIEGO Boardmember JOSEPH A. FERNEKES Boardmember KARYL MATSUMOTO Boardmember RICHARD BATTAGLIA Investment Officer SYLVIA M. PAYNE Clerk BARRYM. NAGEL Executive Director STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS A V AILABLE FOR USE BY THE HEARING-IMP AIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve minutes of December 13, 2006 2. Motion to approve expense claims of January 10,2007 ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING AGENDA JANUARY 10, 2007 PAGE 2 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIP AL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, JANUARY 10,2007 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The. regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. RICHARD A. GARBARINO, SR Mayor PEDRO GONZALEZ Vice Mayor MARK N. ADDIEGO Councilman JOSEPH A. FERNEKES Councilman KARYLMATSUMOTO Councilwoman RICHARD BATTAGLIA City Treasurer SYLVIA M. PAYNE City Clerk BARRY M. NAGEL City Manager STEVENT. MATIAS City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT A V AILABLE FOR USE BY THE HEARING IMP AIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS . Gang Task Force Update AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL . Announcements . Committee Reports . City Selection Committee Assignments . Appoint subcommittee to meet with Historical Society CONSENT CALENDAR 1. Motion to approve the minutes of December 21 and 27,2006 2. Motion to confirm expense claims of January 10,2007 3. Motion to approve the Miller Avenue and South Spruce Avenue Street Resurfacing Project as complete in accordance with plans and specifications ADMINISTRATIVE BUSINESS 4. Resolution establishing conditions for the approval of transfer of an open video system agreement and encroachment agreement from RCN Telecom Services, Inc. to Astound Broadband, LLC CLOSED SESSION 5. Pursuant to Government Code section 54957.6, conference with labor negotiator, Elaine Yamani, for all units COUNCIL COMMUNITY FORUM ADJOURNMENT REGULAR CITY COUNCIL MEETING AGENDA JANUARY 10,2007 PAGE 2 - ~'t\\ s4# & ~ . ~\J,.\ o <:"l:) >-- ..... ~ r; u 0 '4lI<-Q""'~ Staff Re120rt AGENDA ITEM # 3 DATE: TO: FROM: SUBJECT: January 10,2007 Honorable Mayor and City Council Marty Van Duyn, Assistant City Manager ACCEPT ANCE OF MlLLER A VENUE AND SOUTH SPRUCE A VENUE RESURFACING PROJECT: ENGINEERING FILE NO. 51-13231-0701, PROJECT NO. ST-07-1, BID NO. 2445 RECOMMENDA TION It is recommended that the City Council, by motion, accept the Miller A venue and South Spruce A venue Resurfacing Project as complete in accordance with the plans and specifications. BACKGROUNDIDISCUSSION The completed project included Miller A venue from Chestnut A venue to Maple A venue, lmd South Spruce A venue from Starlite Street to South Canal Street. The construction project involved full width pavement grinding, wedge grinding, asphalt pavement dig-outs, pavement crack sealing, installation of new asphalt concrete surfacing, new pavement striping and markings, and raising the utility manhole and monument covers to grade. On June 20, 2006 and June 27, 2006, staff advertised the notice to invite sealed bids for the project. Staff opened bids on July 13,2006 and six (6) bids were received. Below is the summary of the bids: Engineer's Estimate: Bids: c.F. Archibald Paving, Inc. of Redwood City Interstate Grading & Paving, Inc. of South San Francisco G. Bortolotto and Co., Inc. of San Carlos El Camino Paving of Sunnyvale O'Grady Paving, Inc. of Mountain View Esquivel Grading & Paving, Inc of San Francisco $627,115.00 $647,688.00 $648,~~97 .00 $652,017.39 $752,891.28 $785,502.00 $872,715.50 The bid proposal specifically stated that all bidders should attach the most current Asphalt Concrete Price Index to their respective bids. This price index determines whether the cost of asphalt concrete, a by-product of oil, will increase or decrease due to monthly fluctuations in the cost of oil and it's by- products. Staff Report Subject: ACCEPTANCE OF MILLER A VENUE AND SOUTH SPRUCE A VENUE RESURFACING PROJECT: ENGINEERING FILE NO. 51-13231-0701, PROJECT NO. ST-07-1, BID NO. 2445 Page 2 of 3 The City Attorney's office concluded that the low bidders' failure to attach the Asphalt Ptice Index rendered their submitted bids as non-responsive and provided sufficient cause forrejection of the bids submitted by c.F. Archibald Paving, Inc. of Redwood City, El Camino Paving of Sunnyvale, and O'Grady Paving, Inc. of Mountain View; allowing the project to be awarded to the second lowest responsive bidder, Interstate Grading and Paving, Inc. of South San Francisco. Change Orders were issued to the contractor to perform additional pavement grinding work on Spruce A venue, extending the limits of work to the Colma Creek btidge approach to correct the slope of the existing grade, remove the soft pavement base encountered on Miller A venue and replace the existing base with an asphalt base coarse material. The total change order amounted to $ 9,134.00. FUNDING Shown below is the cost breakdown for the project budget: Interstate Grading & Paving, Inc. of South San Francisco Bid Amount Add 10% Contingency Total Project Budget Cost - $648,997.00 - $ 64,900.00 - $713,897.00 This project was included in the City of South San Francisco's 2006 - 2007 Capital Improvement Program. Gas Tax and Measure A funds in the amount of $713,897.00 were budgeted to cover the costs. The actual construction cost for the project was $626,987.15 and the summary is attached. Shown below is the cost breakdown for the project budget: Interstate Grading & Paving, Inc. Construction Cost Approved Change Orders - (CCO-1) Total Project Budget Cost - $617,853.15 - $ 9,134.00 - $626,987.15 CONCLUSION The project installed new asphalt pavement to improve the surface resulting in smoother driving, less vehicle emission due to continuous flow of traffic, reduced impact to vehicle damage due to elimination of potholes and uneven pavement surface, increased service life of the street, and reduced major street maintenance for an extended petiod of time. The project came in under the engineer's estimate and under the bid amount by the Contractor. The project was inspected by City staff and completed in accordance with the plans and specifications. The project has a one year warranty period, which takes effect upon acceptance by the City Council. Staff will file a Notice of Completion and release the payment performance bond and retention funds at the end of the thirty day lien petiod. Staff Report Subject: ACCEPTANCE OF MILLER A VENUE AND SOUTH SPRUCE AVENUE RESURFACING PROJECT: ENGINEERING FILE NO. 51-13231-0701, PROJECT NO. ST-07-1, BID NO. 2445 Page 3 of 3 RR: rd: rc Attachments: Construction Cost Summary Spreadsheet Bid Summary Spreadsheet CITY OF SOUTH SAN FRANCISCO ENGINEERING DIVISION MILLER AVENUE AND SOUTH SPRUCE AVENUE RESURFACING PROJECT PROJECT NO. ST-07-1, BID NO. 2445 FINAL PAY ESTIMATE DECEMBER 20, 2006 Interstate Grading & Paving, Inc Bid Item Description Unit Estimated Bid Unit Final Pay Estimate Item Quantity Price Final Quantity Final Amount 1 Traffic Control LS 1 $ 50,000.00 1.00 $ 50,000.00 2 Asphalt Concrete Pavement Dig-outs TON 1,550 $ 120.00 1,454.82 $ 174,578.40 3 Full Width Pavement Grinding (Miller A venue - SY 20,090 $ 4.00 20,090.00 $ 80,360.00 Final Quantity) 4 Asphalt Pavement Crack Sealing (Spruce LS 1 $ 46,000.00 $ A venue - Final Quantity) - - 5 AC Wedge Grind & Conform Grind LF 1,720 $ 3.50 1,720 $ 6,020.00 6 2-inch AC Overlay TON 3,700 $ 75.00 3,548.21 $ 266,115.75 7 Adjust SSMH and SDMH Covers to Grade EA 14 $ 500.00 7 $ 3,500.00 8 Adiust Monument Covers to Grade EA 11 $ 350.00 9 $ 3,150.00 Pavement Stripin~, Markers & Markin~s 9 "STOP" EA 11 $ 135.00 12 $ 1,620.00 10 "XING" (Yellow) EA 6 $ 135.00 6 $ 810.00 11 "SCHOOL" (Yellow) EA 6 $ 155.00 6 $ 930.00 12 "SLOW" (Yellow) EA 7 $ 135.00 7 $ 945.00 13 "25" EA 2 $ 85.00 2 $ 170.00 14 "30" EA 4 $ 85.00 4 $ 340.00 15 Limit Line (White) LF 392 $ 4.00 775 $ 3,100.00 16 Limit Line (Yellow) LF 64 $ 4.00 - $ - 17 Crosswalk (Hatched Yellow) LF 1,048 $ 4.00 160 $ 640.00 18 Crosswalk (White) LF 740 $ 4.00 1,466 $ 5,864.00 19 Detail 2 LF 4,310 $ 1.00 1,789 $ 1,789.00 20 Parking Cross EA 31 $ 50.00 70 $ 3,500.00 21 Detail 21 LF 2950 $ 2.00 4,170 $ 8,340.00 22 Fire Hydrant Blue Marker EA 7 $ 18.00 7 $ 126.00 23 Flexible Pedestrian Crossing Sign (paddle Type EA 6 $ 400.00 6 $ 2,400.00 in Reflective Green) 24 Type 1 Arrow EA 2 $ 75.00 2 $ 150.00 25 Type IV Arrow EA 5 $ 85.00 5 $ 425.00 26 Detail 38C LF 920 $ 2.50 - $ - 27 Detail 38 LF 250 $ 2.50 250 $ 625.00 28 Detail 9 LF 1,200 $ 1.00 1,330 $ 1,330.00 29 "KEEP" EA 3 $ 135.00 3 $ 405.00 30 "CLEAR" EA 3 $ 155.00 3 $ 465.00 31 "AHEAD" EA 1 $ 155.00 1 $ 155.00 Total Bid (Bid Items 1 through 31) $ 617,853.15 Change Orders Add"'ooal p",m,rn Grio",o, at SW"" Avao"'J::] CCQ-l Addlllooal D1<rorns to "mov, ,oft pav,mool b"" LS and replace exisitng base with asphlat base course material. 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("t)\OSt-~M~ \0 <t:<t:<t:<t:<t:<t:~~~~~<t:~;;1 ~~~~~~....:l....:l....:l....:l....:l~....:l....... I~ ,...., .91~ ~ 0) 0 :21(: ~ ~ ;:"'1(: o 0 , 0 ~ d::r:O ~U....:l r-~~ <t: ~ s:o'ij 00 e ~ blld ~ ~.~ ~ _ Q.) tI).- 4) -t;o"O ;>< '" .... 4) "'"'"0 ~u~ Q) ~ ~ IE 0 .~ ~ I ~ ~ ~ ~ ~ ~ ~ .~ ~ ~ I;;~~~ e aa.>)>o<( ~~]]N~N~~~~> ..... ..... ~ tI) 'td .S ~ ::c: :-9 :a ~ ~ 10 b .s .S 8 8 '0 ~ 'J g ~ 11 a c fl r' ;.::3;.:3 u u ~ P-. ~ ~ ~ e-- ~ ~ O'\;::::~~::!:~~~~~~r::i~ M N oog NV"I~~~MM"'" <t:<t:~~~<t:<t:<t: ~~....:l....:l.....~~~ ,...., ..... M ~ ::l o .a u 00 00 M M 0'0 ]]] 4) 4) 4) ~o~ CIl S o ..... ..... -0 a5 p.~~ i ~ d ~ ~ . . . f-< ..rV"l\Or--OOO'oO..... NNNNNNMM ~'t~ ~ .s (0 0 >- .... ~ ~ v 0 '4l!!Q1'~~ Staff Report AGENDA ITEM # 4 DATE: TO: FROM: SUBJECT: January 10, 2006 Honorable Mayor and City Council Doug Hollis, Director of Information Technology RESOLUTION APPROVING THE TRANSER OF AN OPEN VIDEO SYSTEM AGREEMENT AND ENCROACHMENT AGREEMENT FROM RCN TELECOM SERVICES, INC. TO ASTOUND BROADBAND, LLC RECOMMENDATION Staff recommends that the City Council adopt the attached resolution which establishes the conditions for approving the transfer of an Open Video System Agreement and Encroachment Agreement from RCN Telecom Services Inc. (RCN) to Astound Broadband LLC (Astound). BACKGROUNDIDISCUSSION The City currently has an Open Video System Agreement ("OVS" or "Agreement") in place with RCN, which was executed in March of 1999, and expires by express terms twelve years following execution, or on March 9, 2011. On September 21, 2006, the City received a request from RCN to transfer the existing Agreement to Astound. The request was accompanied by a Federal Communications Form 394, an informational package required under Federal Law that is intended to provide the City with information useful to evaluating the proposed transfer. Under applicable Federal Regulations, the City has 120 days following receipt of Form 394 within which to take action regarding the proposal. If the City fails to act within that period, the proposal is deemed approved. However, it is in our best interest to review and approve the transfer as it will continue to provide competitive Cable TV services for residents in South San Francisco. In August of 2006, nine (9) agencies in San Mateo County and the City and County of San Francisco received notice that the assets and franchises ofRCN were being sold to Astound. Astound is a competitive video provider active in the Contra Costa County area (Concord, Walnut Creek, Contra Costa County unincorporated areas) as well as in the Pacific Northwest. They are based in Kirkland, Washington with an office in the East Bay. Under Federal Law and the terms of the City's non-exclusive OVS agreement with RCN, each franchising agency has the right to review the proposed transfer of the franchise to Astound. The nine (9) agencies in San Mateo County worked through the San Mateo County Telecommunications Authority (SAMCAT) to review the proposed transfer. Michael Friedman of Telecommunications Management Corp. (TMC) was Staff Report Subject: RCN transfer of the "OVS" and encroachment permit to Astound Page 2 retained by the agencies to perform this review. The SAMCA T /TMC report recommends that any transfer of the OVS from RCN to Astound should include an agreement between Astound and the City which continues the terms of the existing franchise and also recommends Astound cover the cost of the transfer review process. Section 4 ofthe attached resolution, assures Astound shall be responsible for any obligations and liabilities under the OVS that accrue on or after the Closing Date.. Astound appears to be legally, financially and technically capable of operating the transferred cable system. The draft Resolution being considered by the City Council incorporates all of SPI.MCA T's suggested reservation of rights and cost recovery provisions. Finally, Staff notes that city officials in Contra Costa County give Astound high marks for their customer service and marketing and indicate that their presence in South San Francisco and the San Mateo County market would be a plus. FUNDING The adoption of this resolution itself will have no budget impact on the City. CONCLUSION Staff feels it is in the City's interest to continue the relationship with RCN and its successor company as it will continue to provide competitive Cable TV services for residents in South San Francisco. Staff recommends Council approval of the attached resolution and a ent with Astmd:---'..",,, By. "~k j( ~ fk APPro~d: c (: -u Dougl R. Hollis arry M. Nagel Director of Information Technology City Manager Attachment: RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION OF THE ESTABLISHING CONDITIONS FOR THE APPROVAL OF A TRANSFER OF AN OPEN VIDEO SYSTEM AGREEMENT AND ENCROACHMENT AGREEMENT FROM RCN TELECOM SERVICES, INC. TO ASTOUND BROADBAND, LLC WHEREAS, RCN Telecom Services, Inc. ("Operator") owns, operates and maintains an Open Video System ("OVS" or "System") in the City of South San Francisco ("City"); and WHEREAS, Operator provides cable service in the City pursuant to the terms of Open Video System Agreement ("Agreement") granted to Operator effective March 10, 1999; and WHEREAS, Operator and Astound Broadband, LLC ("Astound" or "Transferee") are parties to an asset purchase agreement ("Purchase Agreement") pursuant to which the System and the Agreement are to be transferred to Astound; and WHEREAS, on September 21,2006, the City received an F.C.C. Form 394 requesting a transfer of the Agreement from Operator to Transferee; and WHEREAS, the City has one hundred twenty (120) days from the receipt of a complete F.C.C. Form 394 to act upon the transfer request or the request automatically is deemed to have been approved; and WHEREAS, the one hundred twenty (120) day review period expires on January 19, 2007; and WHEREAS, to the extent required by the South San Francisco Municipal Code the Agreement cannot be transferred or assigned without the City Council's consent; and WHEREAS, federal regulations permit the City to evaluate the legal, technical and financial qualifications of Operator to operate the System; and WHEREAS, the United States Court of Appeals for the Ninth Circuit, in a case involving the County of Santa Cruz, California and Charter Communications, found that local cable franchising authorities should be afforded broad deference in legislative acts in their role as stewards of the public good; and 1 WHEREAS, the City, as steward of the public good, believes that the transfer will be in the best interest of subscribers provided the transfer is conditioned in order to safeguard the interests of System subscribers; and WHEREAS, on March 24, 1999, the City and RCN executed an Encroachment Agreement allowing RCN to construct, install and maintain the facilities and video services authorized by the OVS; and WHEREAS, pursuant to Section 45 of the Encroachment Agreement, the City must provide written approval of any proposed assignment of the Encroachment Agreement; and WHEREAS, the City desires to proceed with the proposed transfer of the OVS and assignment of the Encroachment Agreement on the terms and conditions set forth herein. NOW, THEREFORE, the City Council of the City of South San Francisco does hereby resolve, determine and order as follows: Section 1. The City hereby consents to the transfer of the OVS and assignment of the March 24, 1999 Encroachment Agreement, subject to the following conditions: 1. Astound Broadband, LLC, the Transferee, is owned and controlled as indicated in Exhibit A attached hereto. To the extent required by South San Francisco Municipal Code 6.76 and Section 5 of the OVS, any change of ownership or control of Transferee from the ownership and control indicated in Exhibit A shall be subject to prior City review and consent. 2. The City expressly reserves any and all rights that it may possess under the OVS and applicable law with respect to any non-compliance issues on the part of Operator, whether known or unknown, which exist prior to the effective date of this transfer and Transferee reserves any and all rights and defenses with respect to any such non- compliance issues. In reserving such rights, the City confirms that the Operator is materially in compliance with the provisions of the OVS and there exists no fact or circumstance known to the City which constitutes, or which, with the passage of time or the giving of notice or both, would constitute a material default or breach under the OVS or would allow the City to cancel or terminate the rights hereunder, except upon the expiration of the full term of the OVS. 3. The transfer is expressly contingent upon Transferee reimbursing the City for the consultant's costs incurred in the processing of the request for transfer in accordance with Chapter 6.76 of the South San Francisco Municipal Code, not to exceed any maximum 2 amount indicated in the "Change of Ownership Consent Agreement" attached to this Resolution as Exhibit A. Said reimbursement shall be provided within thirty (30) calendar days of Transferee's receipt of an itemized invoice detailing the Consultant's costs. 4. All terms of the OVS Agreement remain in full force and effect, including all terms contained in applicable Resolutions approving the OVS Agreement. The OVS agreement allows the City to require Operator to provide up to three (3) Public, Educational and Governmental ("PEG") access channels. Two of the three (3) access channels are currently provided by the Operator. Transferee agrees to abide by all requirements of the OVS regarding provision of PEG service, and to activate and provide one additional PEG access channel at City's request. This channel may be located on Transferee's digital tier of service. Transferee shall not be required to carry the second and third PEG Channels on the Basic Service tier until Transferee converts its entire System to a digital format. 5. Transferee shall evidence acceptance of these conditions by signing a copy of the "Change of Ownership Consent Agreement," in substantially the same form as attached to this Resolution as Exhibit A, containing the conditions provided to Transferee and submitting the same to the City Clerk within sixty (60) calendar days of this approval. If Transferee fails to submit a signed copy of the "Change of Ownership Consent Agreement" to the City Clerk within said sixty (60) day period, or otherwise refuses to accept the conditions placed on the proposed transfer set forth herein, consent to the transfer shall be automatically withdrawn, effective the date of adoption of this Resolution, and the request to transfer shall be deemed denied. Section 2. Other than with respect to the condition made in Section 1.2 above, if any sentence, clause, phrase or portion of any condition imposed in Section 1 hereof if for any reason held by a court of competent jurisdiction to be invalid or unenforceable, such decision shall not affect the validity of the remaining conditions placed on this transfer. The City Council of the City of South San Francisco hereby declares that it would have adopted this Resolution and each and every condition set forth in Section 1 hereof separately, irrespective of the fact that one or more of these conditions may be declared invalid or unenforceable. Section 3. This Resolution shall be deemed effective for the purposes of the transfer upon adoption by the City Council. 3 Section 4. Subject to the reservation of rights of Section 1.3 above, the City hereby releases Operator, effective upon the consummation of the transaction contemplated in the Purchase Agreement (the "Closing Date") from all obligations and liabilities under the OVS that accrue on or after the Closing Date. Operator shall remain responsible for all obligations and liabilities under the Franchise that accrue up to the Closing Date. Transferee shall be responsible for any obligations and liabilities under the Franchise that accrue on or after the Closing Date. Section 5. The City Clerk shall certify to the adoption of this resolution and shall cause the same to be processed in the manner required by law, and shall transmit a certified copy of this Resolution and Exhibits A and B hereto to Operator, Transferee and Guarantor. PASSED AND APPROVED AND ADOPTED this day of _ 2007 Rich Garbarino , Mayor ATTEST: , City Clerk APPROVED AS TO FORM: City Attorney 4 EXHIBIT A CHANGE OF OWNERSHIP CONSENT AGREEMENT Section 1 Terms used in this Change of Ownership Consent Agreement shall be as defined in Resolution No. Section 2 The City hereby consents to the transfer described in City Resolution No. following conditions: , subject to the I. Astound Broadband, LLC, the Transferee, is owned and controlled as indicated in Exhibit A attached hereto. To the extent required by South San Francisco Municipal Code 6.76 and Section 5 of the OVS, any change of ownership or control of Transferee from the ownership and control indicated in Exhibit A shall be subject to prior City review and consent. 2. The City expressly reserves any and all rights that it may possess under the OVS and applicable law with respect to any non-compliance issues on the part of Operator, whether known or unknown, which exist prior to the effective date of this transfer, and Transferee reserves any and all rights and defenses with respect to any such non- compliance issues. In reserving such rights, the City confirms that the Operator is materially in compliance with the provisions of the OVS and there exists no fact or circumstance known to the City which constitutes, or which, with the passage of time or the giving of notice or both, would constitute a material default or breach under the OVS or would allow the City to cancel or terminate the rights hereunder, except upon the expiration of the full term of the OVS. 3. The transfer is expressly contingent upon Transferee reimbursing the City :Dor the Consultant's costs incurred in the processing of the request for transfer in accordance with Chapter 6.76 of the South San Francisco Municipal Code, not to exceed Ten Thousand Dollars ($10,000.00). Said reimbursement shall be provided within thirty (30) calendar days of Transferee's receipt of an itemized invoice detailing the Consultant's costs. 4. All terms of the OVS agreement remain in full force and effect, including all terms contained in City Resolutions approving execution of the OVS. 5. The OVS agreement allows the City to require Operator to provide up to three (3) Public, Educational and Governmental ("PEG") access channels. Two of the three (3) - A-1 - access channels are currently provided by the Operator. Transferee agrees to abide by all requirements of the OVS regarding provision of PEG service, and to activate and provide one additional PEG access charmel at City's request. This channel may be located on Transferee's digital tier of serviee. Transferee shall not be required to carry the second and third PEG Channels on the Basic Service tier until Transferee converts its entire System to a digital fonnat. 6. Transferee shall evidence acceptance of these conditions by signing a copy of this "Change of Ownership Consent Agreement," and submitting the same to the City Clerk within sixty (60) calendar days of this approval. If Transferee fails to submit a signed copy of this "Change of Ownership Consent Agreement" to the City Clerk within said sixty (60) day period, or otherwise refuses to accept the conditions placed on the proposed transfer set forth herein, consent to the transfer shall be automatically withdrawn, effective the date of adoption of City of Resolution No. , and the request to transfer shall be deemed denied. Section 3 Other than with respect to the promise made in Section 2.2 above, if any sentence, clause, phrase or portion of any condition imposed in Section 2 hereof if for any reason held by a court of competent jurisdiction to be invalid or unenforceable, such decision shall not affect the validity of the remaining conditions placed on this transfer. The City Council of the City of South San Francisco hereby declares that it would have entered into this "Change of Ownership Consent Agreement" and each and every condition set forth in Section 2 hereof separately, irrespective of the fact that one or more of these conditions may be declared invalid or unenforceable. Section 4 Subject to the reservation of rights of Section 2.3 above, the City hereby releases Operator, effective upon the consummation of the transaction contemplated in the Purchase Agreement (the "Closing Date") from all obligations and liabilities under the OVS that accrue on or after the Closing Date. Operator shall remain responsible for all obligations and liabilities under the OVS that accrue up to the Closing Date. Transferee shall be responsible for any obligations and liabilities under the OVS that accrue on or after the Closing Date. - A-2 - Section 5 This Agreement shall be effective upon the Closing Date at which time Franchise and System ownership shall have transferred from Franchisee to Transferee. "City" City of South San Francisco "Transferee" Astound Broadband, LLC By: Rich Garbarino , Mayor Its: Date: Attest: , City Clerk Approved as to Form: , City Attorney - A-3 - Exhibit A - Figure 1 ._,_;\~!,J ;;.t~i*"~ri~['i;': ... r.ror II ";;C~'\ ;;'~"~f_1 'i' .: 1:,)':,;1- ~.1,._ r. ~ ~~1. r:', ~'<t.:~ t-: "AN'::'J ',:.:.i'-.:ft*. lil.-l;iLiGl.,Z "'-:'}..I'I'" l ". ~;ir,l::i-~;W't ....J;,,-i ~ >>!!~ c, ; 11(.,k',,,,~ ")'':f-:''f''''.11;'' (.2'-'.1 ~ ;.i. t)i.,;~. 1'[ (:;it'~"ii iII-,,1 : t.:r~.~ '~' '\'wn'lJh:j,.jullI Hllldin~l. lLC .p,,, !.....) 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