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HomeMy WebLinkAboutCC RES 84-076~0 13 14 15 16 17 18 19 ~0 RESOLUTION NO. 84- 76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, EXTENDING THE CONSENT FOR TRANSFER OF THE CABLE TELEVISION FRANCHISE IN THE CITY OF TUSTIN, CONCERNING HYPOTHECATION OF THE CABLE TELEVISION FRANCHISE IN THE CITY OF TUSTIN, AND RELEASING A CASH DEPOSIT ACCOUNT AND VARIOUS BONDS UPON ACCEPTANCE OF A REPLACEMENT BOND. WHEREAS, Ordinance No. 905 was adopted by the City Council of the City of Tustin on March 19, 198~; and WHEREAS, Ordinance No. 905, as amended by Resolu- tion No. 84-51, consents to the transfer to United Cable of Southern California, Ltd. ("UCSC") of all the right, title and interest of CommuniCom, a C~lifornia corporation, in and to the cable television franchise granted pursuant to Ordinance Nos. 581, 584, 597, 792, 798, 813 and 905 and Resolution Nos. 81-10 and 84-51 (the "Franchise"); and WHEREAS, the City of Tustin has been informed that (a) the transfer of the Franchise to UCSC is expected to occur on or before December 31, 198~, and (b) that the terms fo'r the secured loans of the indebtedness to be incurred by UCSC in connection wi th the acquisition of the Franchise and the construction, improvement and operation of cable tele- vision systems in the City of Tustin and other jurisdictions have changed since the passage of Ordinance No. 905; and -1- 1 £0 11 12 13 14 15 16 17 18 19 ~0 25 26 ~8 WHEREAS Resolution No. 84-51, which was adopted by the City Council of the City of Tustin on July 2, 1984, extended to July 30, 198~', .the time for completion of construc- tion of ~he Tustin cable television system, extended to September 18, 198~, the City's consent for the transfer of the Franchise to UCSC, and required that the payment of $10,000 as provided in Section 8 of Ordinance No. 905 be made on or before July 10, 1984; and WHEREAS, construction of the Tustin cable television system was fully completed and placed into service on or before July WHEREAS, the' City Council of the City of Tustin has determined that it is in the best interests of the City to extend to December 31, 1984, the date for the expiration of the City's consent to the transfer of the Franchise to UCSC; and WHEREAS, CommuniCom paid Ten Thousand Dollars ($10,000) to the City of Tustin, on July 29, 1984 prior to the July 10, 198% deadline of cec"~cn 9 of Ordinance No. 905 = Rosolut~cn No ~ ~ - .%nd and Sect ~. on 3 (a has determined that Section 4 of Ordinance No. 905 does not require the City to consent to any hypothecation of the Franchise as security for any indebtedness of a franchisee, subject to all the terms and conditions of the franchise, --2-- · 1 ~0 13 15 16 17 18 19 ~0 21 a~d the City Council has determined that it has no objection _ to the hypothecation of the Franchise as security for the indebtednesses described below, subject to all the terms and conditions of the franchise; WHEREAS, Six Star Cablevision of Tustin, Inc., doing business under the fictitious business name of Communicom (the "Franchisee"), has filed an acceptance of the terms of Ordinance No. 905 all in accordance with the requirements of Section 12 of Ordinance No. 905; and WHEREAS, Section 13 of Ordinance No. 905, amending previous bond requirements set forth in Ordinance Nos. 581, 597, 792, 798 and 813, requires the franchisee either to deposit $100,000 cash or to file a $100,000 bond during the period of construction of a cable television system, and upon completion of construction' the cash or bond amount is reduced to fifty thousand dollars ($50,000); and WHEREAS, the Franchisee has deposited Fifty, five Thousand Dollars ($55,000) cash into Woi'i$ Farg'o Bank account number 6995-000064-·001, held jointly in the names of the Franchisee and the City of Tustin; and WHEREAS, the Franchisee has filed with the City of Tustin, and is maintaining in full force and effect, a One Hundred Thousand Dollar ($100,000) franchise bond from the Fireman's Fund Insurance Company (No. SLR7095208), dated May 10, 1984; and -3- LO 15 14 15 16 17 18 19 ~0 21 ~8 WHEREAS, the Franchisee also has filed with the City of Tustin, and is m'aintaining in full force and effect,. two other bonds from the Fireman's Fund Insurance Company, each in the amount of Five Thousand Dollars ($5,000) (Nos. SLR7092936 and SLR7092937); and 'WHEREAS, the City has determined that, upon the filing with the City Clerk by the Franchisee of a corporate surety bond in the amount of Fifty Thousand Dollars,and approved by ~ City'Attorney, it is appropriate for the City of Tustin to u release all its interests and rights in the Fifty-five Thousand D'ollars ($55,000) cask amount deposited by the Franchisee in Wells Fargo Bank Account No. 6995-000064-001, plus interest thereon, and to return to the Franchisee for cancellation the One Hundred Thousand Dollar ($I00,000) bond and any other bonds relative to CATV in possession of City. i~0~.~ ~'~='~=~©RE~ "== ~TY CCUNC~L OF THE TUSTIN DoEs HEREBY RESOLVE AS FOLLOWS. SECTION 1. The City of Tustin hereby extands the date of September 18, 1984, set forth ~n Resolution No. 84-51, December 31, 1984, such that the date for the expiration Cable of Southern California, Ltd., shall be extended December 31, 1984. -4- ~0 13 15 16 17 18 19 ~0 ~? SECTION 2. The City of Tustin declares that does not object to the hypothecation to or for the benefit.. · of the Persons or entities set forth below of all the interests which UCSC will receive as assignee under the Franchise to secure indebtednesses to be incurred by UCSC as follows- a. Hypothecation of the Franchise to or for the benefit of a group of banks led by Mellon Bank of Pittsburgh,-Pennsylvania, and the respective assignees thereof, to secure one or more advances of loans with an estimated maximum aggregate principal amount of $120,000,000. . . b. ~ypothecation of the Franchise to or for the benefit o.f UCTC of Southern California, Inc., and the assignees thereof, to secure a loan with a principal amount of up to $5,000,000, with the security for such loan being junior in priority to the lien described in subparagraph a, above. c. Hypothecation of the Franchise to or for the benefit of The First National Bank of Boston, Security Pacific National Bank, United Cable Television Corporation and Nielson Enterprises Inc., and the respective assignees thereof, to secure loans to be made by them up to a maximum aggregate principal amount of $26,000,000, with the security for such loans being junior in -5- 8 LO 13 15 16 17 18 19 ~0 ~5 .. 26 priority to the liens described in subparagraphs a and b, above. d. Hypothecation of the Franchise to or for the benefit of Nielson Enterprises Inc., and the assignees thereof, including The First National . Bank of Boston, Security Pacific National Bank and other holders of CommuniCom's long-term indebted- ness, to secure promissory notes to be issued by UCSC on the maximum aggregate principal amount of $11,265,000 in connection with the acquisition of the F-anchise, w~'th ~:i'te ~ecu',-i'-y :'o'r stick ncte~s being junior in priori uy 'co une Liens =escribed in subparagraphs a, b, and c, above. SECTION 3. The City of Tustin hereby finds that the Franchisee has filed an acceptance of the terms of Ordinance 2.lc. '"C~ '"' the :ora and manne'~ sati zfyinM all of Ail subject to all the terms and conditions of the franchis SECTION ~. At such time as the Franchisee files with the City Clerk a corporate surety bond in the amoUnt of approved by ~2qe City Attorney Fifty Thousand Dollars ($50,000.O0),/the City of Tustin (a) sha:l release all of the C2.'zy: :3 'ntmr~st~ ~nd ri.~hts in th~ Fift~.~ ~iva Thousand ~' '.~ ,':~3= '%C0) cas.h d=~ : _ ,-.~ ~..~ .... , ___cs,ted by the Franchisee in Wells Fargo Bank Account No. 6995-000064-001, plus interest thereon, and (b) shall return to the Franchisee for cancellation the One Hundred Thousand Dollar ($100,000.00) -6- bond (Fireman's Fund Insurance Company Bond No. SLR7095208) and any other bonds relative 'to CATV in possession of City. SECTION 5. The City of Tustin hereby finds that the Tustin cable television system was fully and finally · completed and placed into service on or before July 30, . 1984. SECTION 6. The City of Tustin hereby finds that $10,000 was paid to the City of Tustin"on June 29, 1984, in accordance with the provisions of Section 8 of Ordinance · No. 905 and Section 3(a) of Resolution. No. 84-51. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Co .uncil of the City of Tustin,. California, held on the . 17th day of' September, 1984. 'MAYOR ATTEST: -7- 10 11 12 13 15 16 17 18 19 ~0 ~5 ~? ~8 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) § "' ~TY OF TUST i N ) MARY E. WYNN, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of · ~e City Council of the City of Tustin ~s five; that the above and foregoin§ Resolution No. 84-76 was duly and regularly introduced, passed and adopted at a regular meeting of the City Council held on the 17th day of Sep.t. ember, 1984, by the following vote' AYES · COUNCILPERSONS' Edgar, Hoesterey, ICennedy, Saltarelli NOES · COUNCILPERSONS' None ABSENT' COUNCILPERSONS' Greinke t~- C ler~ q~~~' " MARY E. WY~i-' \~-~ City of Tus~~ CalifornTa