HomeMy WebLinkAboutAgenda Report - August 7, 1996 (78)0
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AGENDA TITLE: Resolution Approving the Transfer of Control of CAN Franchise from Continental
Cablevision, Inc. to US WEST, Inc.
MEETING DATE: August 7, 1996
PREPARED BY: Kirk J. Evans, Assistant to the City Manager
RECOMMENDED ACTION: That City Council pass a Resolution Approving the Transfer of Control of
CATV Franchise from Continental Cablevision, Inc. to US WEST, Inc.
(attached).
BACKGROUND INFORMATION: On 2/27/96 Continental Cablevision, Inc. and U S WEST, Inc.
entered into an agreement whereby Continental will be merged into
U S WEST and become a part of the U S WEST Media Group. This
subsidiary includes all cable, international, wireless and directory
services. After the merger, legal control of the franchise will rest with U S WEST. Continental will
continue to exist and hold the franchise in the City of Lodi. Continental is requesting City Council
approval for what is known as a transfer of control of the franchise. The franchise itself will not be
transferred. As in the past, Continental will continue to be responsible for all obligations of the franchise.
Two key factors brought about Continental's decision to merge into U S WEST: sweeping regulatory
changes, as evidenced by the Telecommunications Act of 1996, and rapid advances in technology. Both
factors increased the outlook for competition in video and telephone service and demonstrated the need
for substantial expertise in an array of telecommunications ventures. A U S WEST / Continental merger
brings together complementary sets of expertise and provides resources to assure success.
The parties believe the merger is an important and positive change that will strengthen Continental for the
future. This will allow them to continue to provide and improve service to all their customers. Certain
conditions will not change. Employees and management of Continental will remain in place and will
continue to operate the system. The tenets by which they do business will not change: to provide a high
level of customer service, develop advanced technology to better serve their customers, and strengthen
their commitment to the local community - particularly to schools.
Karen Munroe, Continental's Vice President, Government and Public Affairs, will be present at the
meeting if Council wishes to obtain further information regarding this transfer of control.
FUNDING: N/A
I/I
Kirk J. Evans
Assistant to the City Manager
APPROVED:
1H. Dixon Flynn -- ity Manager
RESOLUTION NO. 96-114
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE TRANSFER OF CONTROL OF CATV FRANCHISE
FROM CONTINENTAL CABLEVISION, INC. TO U S WEST, INC.
WHEREAS, King Video Cable, dba Continental Cablevision ("Franchisee"), is
the duly authorized holder of a franchise, the ("Franchise") authorizing the operation and
maintenance of a cable television system and authorizing Franchisee to serve the City of
Lodi ("Franchise Authority"); and
WHEREAS, Franchisee is a subsidiary of Continental Cablevision, Inc.
("Continental"); and
WHEREAS, Continental and U S WEST, Inc. ("U S WEST") have entered into
an Agreement and Plan of Merger dated February 27, 1996 (the "Agreement"), subject to,
among other considerations, any required approval of the Franchise Authority with
respect thereto; and
WHEREAS, in connection with the merger contemplated by the Agreement, the
parent company Continental will merge with U S WEST or with a wholly-owned
subsidiary of U S WEST; and
WHEREAS, Franchisee will remain in place and continue to hold the Franchise;
WHEREAS, U S WEST may thereafter assign or transfer the control related to
Continental to an entity controlling, controlled by or under common control with U S
WEST; and
WHEREAS, to the extent the Franchise requires, Continental and U S WEST now
seek approval of the transfer of control from Continental to U S WEST; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LODI AS FOLLOWS:
SECTION 1. To the extent that the consent of the Franchise Authority is
required by the terms of the Franchise and applicable law, the Franchise Authority hereby
consents to the transfer of control of the Franchise, which is currently in full force and
effect with no outstanding defaults or breaches thereunder.
SECTION 2. U S WEST may thereafter assign or transfer the Franchise or
control related thereto to an entity controlling, controlled by or under common control
with U S WEST upon notice to the Franchise Authority.
SECTION 3. This Resolution shall have the force of a continuing agreement
between Franchisee and the Franchise Authority, and the Franchise Authority shall not
amend or otherwise alter this Resolution without the consent of Franchisee and U S
WEST.
Dated: August 7, 1996
I hereby certify that Resolution No. 96-114 was passed and adopted by the Lodi
City Council in a regular meeting held August 7, 1996 by the following vote:
AYES: Council Members - Davenport, Pennino, Sieglock and Warner (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
ABSTAIN: Council Members - Mann
41" ' Qfv�
IFER . PERRIN
qty Clerk
96-114