HomeMy WebLinkAboutAgenda Report - November 3, 1999 E-16�y7�0
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AGENDA TITLE: Resolution Approving the Transfer of Control of CATV Franchise from
Media One Group, Inc. to AT&T Corp.
MEETING DATE: November 3, 1999
PREPARED BY: Kirk J. Evans, Human Resources Analyst II
RECOMMENDED ACTION: That City Council pass a Resolution Approving the Transfer of
Control of CATV Franchise from Media One Group, Inc. to AT&T
Corp. (attached).
BACKGROUND INFORMATION: On May 6, 1999 Media One Group, Inc. and AT&T Corp.
entered into an agreement whereby Media One Group, Inc. will be merged into a wholly owned subsidiary
corporation of AT&T Corp.. This subsidiary includes all cable, international, wireless and directory
services. After the merger, legal control of the franchise will rest with AT&T Corp.. Media One will
continue to exist and hold the franchise in the City of Lodi. This franchise terminates on February 20, 2008.
Media One 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, Media One will continue to be responsible for all
obligations of the franchise.
Key factors involved in this merger are sweeping regulatory changes, as evidenced by the
Telecommunications Act of 1996, and rapid advances in technology. These factors have increased the
outlook for competition in video, telephone and internet services, and demonstrate the need for substantial
expertise in an array of telecommunications ventures. An AT&T/Media One 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 Media One for the
future. This will allow them to continue to provide and improve services to all their customers. Certain
conditions will not change. Employees and management of Media One 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 W schools.
FUNDING: N/A
Kirk J. Evans
Sr. Management Analyst
APPROVED:
H. Z31—
Dixon Flynn -- City Manager
RESOLUTION NO. 99-178
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
THE CHANGE OF CONTROL OF THE CABLE
COMMUNICATIONS FRANCHISE
WHEREAS, King Video Cable, dba Media One ("Franchisee"), is duly authorized to
operate and maintain a cable communications system within the corporate limits of the City of
Lodi, the ("System") by the City of Lodi ("Franchise Authority") pursuant to a franchise (the
"Franchise") granted by the Franchise Authority; and
WHEREAS, pursuant to the Agreement and Plan of Merger among AT&T Corp. ("AT&T"),
a newly formed whole subsidiary of AT&T ("Merger Sub"), and Media One Group, Inc., the parent
of Franchisee ("MediaOne"), dated as of May 6, 1999 (the "Merger Agreement"), MediaOne will
merge with and into Merger Sub with Merger Sub as the surviving corporation in the merger, and
as a result of the transactions contemplated by the Merger Agreement, Media One will become a
wholly owned subsidiary of AT&T (the "Transactions"); and
WHEREAS, Franchisee will continue to hold the Franchise after consummation of the
Transactions; and
WHEREAS, FCC Form 394 with respect to the Transactions has been filed with the
Franchise Authority; and
WHEREAS, the parties have requested consent by the Franchise Authority to the
Transactions.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LODI AS FOLLOWS:
SECTION 1. The Franchise Authority hereby consents to and approves the
Transactions to the extent that such consent is required by the terms of the Franchise and
applicable law.
Dated: November 3, 1999
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I hereby certify that Resolution No. 99-178 was passed and adopted by the Lodi City
Council in a regular meeting held November 3, 1999 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Nakanishi, Pennino and Land
(Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Mann
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99-178