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HomeMy WebLinkAbout00-146 - Resolutions RESOLUTION NO. 00-146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA AUTHORIZING AND CONSENTING TO THE TRANSFER OF CONTROL OF A CABLE TELEVISION FRANCHISE HELD BY COMCAST CABLEVISION OF INLAND EMPIRE, INC. A. RECITALS. A. Comcast Cablevision of Inland Empire, Inc., a Delaware corporation ("Franchisee"), is the duly authorized holder of a franchise ("Franchise") that authorizes the construction, operation, and maintenance of a cable television system within the City of Rancho Cucamonga ("Franchise Authority"). The Franchise became effective on April 7, 1999. B. On March 2, 2000, the Franchise Authority received from Comcast Cablevision Corporation of California, the parent company of the Franchisee, and from Clear Cablevision, Inc., an indirect, wholly-owned subsidiary of Adelphia Communications Corporation ("Transferee"), an application for the Franchise Authority's consent to a transfer of control of the Franchise. This application was made on FCC Form 394 entitled "Application for Franchise Authority Consent to Assignment or Transfer of Control of Cable Television Franchise." Supplemental information relating to this application was provided to the Franchise Authority by the applicants in letters dated June 1, 2000, and June 30, 2000. C. In accordance with Section 7.02.020(F) of Chapter 7.02 of Title 7 of the Rancho Cucamonga Municipal Code, the Franchise Authority has the right to review and to approve the financial, technical, and legal qualifications of Adelphia Communications Corporation, as the ultimate parent corporation of the Transferee, in connection with the proposed transfer of control of the Franchise. D. The staff of the Franchise Authority has reviewed the documentation that accompanied FCC Form 394 and, based upon the representations set forth in that documentation, has concluded that Adelphia Communications Corporation, as the ultimate parent corporation of the proposed Transferee, Clear Cablevision, Inc., has the requisite financial, technical, and legal qualifications to adequately perform, or to ensure the performance of, all obligations required of the Franchisee under the Franchise, and that the Franchisee will continue to be bound by all existing terms, conditions, and obligations under the Franchise previously owned and operated by Comcast Cablevision of Inland Empire, Inc. Resolution No. 00-146 Page 2 of 5 B. RESOLUTION. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA RESOLVES AS FOLLOWS: SECTION 1. In accordance with Section 7.02.020(F) of Chapter 7.02 of Title 7 of the Rancho Cucamonga Municipal Code, the Franchise Authority consents to and approves the proposed cable system exchange transactions by and between Comcast Corporation, on the one hand, and Adelphia Communications Corporation, on the other hand, which cable system exchange transactions when consummated will result in a change of control of the Franchise and of the Franchisee. The Franchise Authority further consents to and approves the internal reorganization among subsidiaries of Comcast Corporation, the ultimate parent company of the Franchisee, the conversion of the Franchisee from a corporation to a limited liability company, and the transfer by Comcast Cablevision Corporation of California of its limited liability company ownership interests in the Franchisee to Clear Cablevision, Inc. SECTION 2. The authorization, consent and approval of the Franchise Authority to the proposed assignment and change of control is conditioned upon compliance by the applicants with the following requirements, as to which they are jointly and severally responsible: 1. Adelphia Communications Corporation, as the ultimate parent corporation of the Transferee, Clear Cablevision, Inc., will execute and file with the office of the City Clerk an "Unconditional Guarantee of Transferee's Obligations" in substantially the form attached as Exhibit A to this resolution. 2. An original or conformed copy of the written instrument evidencing the closing and consummation of the proposed cable system exchange transaction that will result in a change of control of the Franchise must be filed in the office of the City Clerk within 30 days after that closing and consummation. 3. Regardless of whether the transaction described in the FCC Form 394 actually closes, the Franchise Authority will be reimbursed for all costs and expenses reasonably incurred by the Franchise Authority in processing and evaluating the information relating to the proposed assignment and change of control of the Franchise; provided, however, that those costs and expenses will not exceed the sum of $2,500 and will be set forth in an itemized statement transmitted by the City Manager, or the City Manager's designee, to the applicants within 60 days after the effective date of this resolution. The total amount set forth in the statement must be paid by the applicants to the Franchise Authority within 30 days after the date of the statement. Resolution No. 00-146 Page 3 of 5 SECTION 3. Nothing contained in this resolution may be construed to modify the franchise service area of the Franchisee, which is restricted to that area designated in Exhibit C to the Franchise dated April 7, 1999, which Franchise was approved by Resolution No. 99-084, as adopted by the City Council on April 7, 1999. SECTION 4. Nothing contained in this resolution may be construed to extend the term of the Franchise, which will terminate in its entirety on April 6, 2014. SECTION 5. The City Clerk is directed to transmit a certified copy of this resolution to the following persons: Comcast Corporation 1500 Market Street Philadelphia, Pennsylvania 19102-4735 Attention: General Counsel Adelphia Communications Corporation Main at Water Street Coudersport, Pennsylvania 16915 Attention: Randall D. Fisher, Esq. SECTION 6. The City Clerk is directed to certify to the passage and adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 21"day of June 2000. AYES: Alexander, Curatalo, Dutton, Williams NOES: None ABSENT: Biane ABSTAINED: None r William J. Alexa er, Mayor Resolution No. 00-146 Page 4 of 5 ATTEST: D ra J. AdanjVMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 21st day of June 2000. Executed this 22nd day of June, at Rancho Cucamonga, California. DeUra J. Adams, GUC, City Clerk do q9-o6Z Resolution No. 00-146 Page 5 of 5 EXHIBIT "A" UNCONDITIONAL GUARANTEE OF TRANSFEREE'S OBLIGATIONS In consideration for the Franchise Authority's consent to the transfer of control of the Franchise as referenced in the foregoing resolution, Adelphia Communications Corporation, as the ultimate parent corporation of the Transferee, Clear Cablevision, Inc., unconditionally guarantees the performance by the Transferee of its obligations under that Franchise. "GUARANTOR' Adelphia Communications Corporation, a Delaware Corporation By: y✓A& kr /— (Authorized Corporate Officer) Title: 1/P 1h1;0jSa*11-2C2� Date: ,d APPROVED AS TO FORM: JAMES L. MARKMAN, CITY ATTORNEY