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HomeMy WebLinkAboutCC RES 94-1271 2 3 4 5 6 ?. 8 9 10 11 12 13 14 25 16 17 18 19 20 21 22 ?.3 24 25 26 27 28 RESOLUTION NO. 94-127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE TRANSFER AND CHANGE OF CONTROL OF A CABLE TELEVISION SYSTEM FRANCHISE FROM THE TIMES MIRROR COMPANY TO COX CABLE COMMUNICATIONS, INC. WHEREAS, pursuant to Chapter 4 of Title 7 of the Tustin Code, the City of Tustin entered into a franchise agreement with Community Cablevision Company, a wholly owned subsidiary of Times Mirror Cable Television of Orange County, Inc. (hereinafter referred to as "Times Mirror Cable"); WHEREAS, Times Mirror Cable uses-the fictitious business name of "Dimension Cable Services"; and WHEREAS, Times Mirror Cable is owned by Times Mirror Cable Television, Inc., a subsidiary of The Times Mirror Company; and WHEREAS, Section 7418(d) of the Tustin City Codes requires that the City Council approve any franchise transfer or change in control; and WHEREAS, Federal Communications Commission ("FCC") regulations (47 CFR Section 76.502 (i)(1)) require that in order for a cable operator to obtain City approval of a franchise transfer or change of control, it must submit to the City a FCC Form 394 and any other information as may be required by the City; and WHEREAS, FCC regulations give the City discretion to approve Form 394; and WHEREAS, The Times Mirror Company and Cox Cable Communications, Inc. ("Cox") have filed a FCC Form 394 with the City requesting City Council approval of the change of control of the franchise to Cox; and WHEREAS, Cox will be owned by Cox Communications, Inc., a subsidiary of Cox Enterprises, Inc.; and WHEREAS, in support of its Form 394 application, Times Mirror Cable and Cox have submitted to the City the following documents which are on file with the City Clerk, and are collectively referred to as the "Merger Documents": FCC Form 394 with 11 exhibits, including agreement and plan of merger between The Times Mirror Company, New TMC, Inc., Cox Cable Communications, Inc., and Cox Enterprises, Inc., and Form S-4, registration statement of new TMC, Inc., filed with Securities and Exchange Commission. 2' 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 i 19~ 20 ~ 21j 22 ?.3 24 25 26 27 28 WHEREAS, it is Dimension Cable's intention to maintain rates for Dimension's customers in' the City similar to those of the surrounding communities served by Dimension Cable in central Orange County. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin, California, hereby resolves as follows: The change in control from The Times Mirror Company to Cox is hereby approved subject to the following conditions: (a) Cox shall ensure that Times Mirror Cable is bound by all provisions of the Tustin City Code and the Franchise Agreement as the successor in interest to Times Mirror Company. (b) Times Mirror Cable, unless prohibited by a FCC decision or ruling, shall implement subscriber refunds, to the extent such are warranted by findings of the FCC in reviewing and acting upon rate decisions of other Cities in Orange County, served by Times Mirror Cable. (c) Within 30 days of adoption of this Resolution, Times Mirror Cable shall pay the City franchise fees on 50~ of the gross advertising revenues, to the extent not already paid retroactive to October 1, 1992 and with interest at 7$ per annum. (d) Cox shall not seek a modification of any franchise commitment regarding facilities and equipment on the basis of "commercial impracticability" under Section 545 of Title 47 of the United State Code, solely or partially as a result of the transfer approved herein. (e) Cox agrees that notwithstanding Section 520 et sea., of Title 47 of the United States Code, it shall assume responsibility for all acts or omissions of its predecessor, The Times Mirror Company. (f) Cox shall ensure that Times Mirror Cable operates and maintain the cable system to comply with all applicable provisions of Part 76, subpart K (technical specifications) of the FCC's rules and regulations, as amended (hereinafter "Technical Specifications"). Should the FCC allow local regulation of the technical performance of cable systems, the technical specifications in effect immediately prior to the date of any such action by the FCC allowing for such local regulation, shall become the technical standards applicable to Cox's cable system for the remainder of its franchise term. i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 2s 27 28 (g) Within ten (10) days of the adoption of this Resolution, Times Mirror Cable and Cox shall each file in the office of the City Clerk, written acceptances of this resolution, executed, respectively by Times Mirror Cable and Cox in the form of Exhibit "A" attached hereto. By executing and filing the acceptances, Times Mirror Cable and Cox each guarantee performance subject to the merger of all obligations and conditions of this. Resolution. The acceptances shall be notarized so as to indicate that the persons executing the acceptances have the authority to bind Times Mirror Cable or Cox. .The failure of Times Mirror Cable and Cox to timely file the acceptances shall automatically repeal this Resolution and City Council approval of the transfer. (h) Providing all conditions of this Resolution have been met, the consent to the transfer of the franchise herein granted shall be effective upon the closing of the proposed merger. The City shall be notified by letter from Cox directed to the City Clerk promptly upon such closing. (i) Times Mirror Cable shall reimburse the City its reasonable administrative, consulting and legal costs incurred in processing the application for approval of the change in control which is the subject of this Resolution, within thirty (30) days of receiving an invoice from the City. The reimbursement amount shall not exceed $5,000.00. This amount shall not be deemed an "external cost". (j) By consenting to and agreeing to accept the franchise transfer, neither the City, nor Times Mirror Cable, nor Cox waives any rights any of them may have under federal, state or local law. (k) By delivering a copy of this Resolution to Cox, the City hereby gives notice that pursuant to Revenue and Taxation Code Section 107.6, the franchise may create a possessory interest which, if created, may be subject to property taxation and that Cox may be subject to payment of property taxes levied on such interest. (1) The City Manager and the City Attorney, or their designees, are hereby authorized and empowered to execute any documents necessary, in their discretion, to implement the approvals contained herein. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 7th day of November, 1994. ATTEST: erk Thomas R. ltarelli, Mayor EXHIBIT "A" GUARANTEE OF TRANSFER OF FRANCHISE Upon the effective date of the merger, TIMES MIRROR CABLE TELEVISION OF ORANGE COTTI`TTY, INC., hereby accepts, and guarantees each and every item of Resolution No. 94-127 of the City of Tustin entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE TRANSFER AND CHANGE OF CONTROL OF A CABLE TELEVISION SYSTEM FRANCHISE FROM THE TIlVIF.S MIItROR COMPANY TO COX CABLE COMMUNICATIONS, INC. DATED: %~ ~ 7 , 1994 TIMES MIItROR CABLE TELEVISION OF ORANGE COUNTY, INC. Name: .C e~ ~reh n d n Title: ~!i c~ P~e1 ~utn"f ~ Ce,~ ~;2 ~ l rnc~n d ,,~~ CERTIFICATE OF ACKNOWLEDGEMENT STATE OF CALIFORNIA SS. COUNTY OF ~~~97i.~ G'G On ~~V f /i / ~9~ before ®e, Robert K. Ruegsegger (date (Notary Public) personally appeared ~ ~d ~Gf / 1 ~~~,? ~ ~~ ~/~' ~l/!¢-/L~ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknow- ledged to me that he/she/they executed the same in his/her/their authorized capacity(ies}, and that by his/her/their signature(s) on the instrument the persons}, or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. SEAL ra ~~ '" T ~ ROBERT K RUEG GE E ~~ ' . ~ i o® Comm. # 999599 NOTARY PUBUC -CALIFORNIA ~ Orange County 1~ ~(IFOPN~ ~ bly Comm. Expires July 18,1997 °° 1 .7~. (NOTAR S GNA E) My coiamission expires July 18, 1997 ERHIBIT "A" GUARANTEE OF TRANSFER OF FRANCHISE Upon the effective date of the merger, COX CABLE COMMUNICATIONS, INC., hereby accepts, and guarantees each and every item of Resolution No. 94-127 of the City of Tustin entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFOItNIA,_APPROVING THE TRANSFER AND CHANGE OF CONTROL OF A CABLE TELEVISION SYSTEM FRANCHISE FROM THE TIlVIFS MIItROR COMPANY TO COR CABLE CO1~~IlVIiJNICATIONS, INC. DATED: ~ , 1994 COX CABLE COMMUNICATIONS, INC. By: Name: ~ Title: V ~cc ~d~e~i ~ e n ~ Svc~o:n to ant subscribed before me tihis ~~~ day of Novemb r, 1994. 'V'otai~ ]l~~h~lic Any (+cYrnrr€~~d ;~ ~~ :~ P~;~N~,'t 31,1 ~t b City of Tustin RESOLUTION CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) RESOLUTION NO. 94-127 ss 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 the City Council is five; that the above and foregoing resolution was passed and adopted at a regular meeting of the City Council held on the 7th day of November, 1994, by the following vote: COUNCILMEMBER AYES: Saltarelli, COUNCILMEMBER NOES: None COUNCILMEMBER ABSTAINED: None COUNCILMEMBER ABSENT: None Potts, Doyle, Thomas, Worley Valerie Grabill, Chief Deputy City Clerk for Mary E. Wynn, City Clerk