HomeMy WebLinkAboutCC RES 02-120RESOLUTION NO. 02-120
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN; CALIFORNIA, CONSENTING TO THE MERGER
OF AT&T CORPORATION AND COMCAST
CORPORATION TO FORM AT&T COMCAST
CORPORATION AS PARENT COMPANY OF THE CITY'S
CABLE TELEVISION SYSTEM FRANCHISEE, MEDIAONE
OF LOS ANGELES, INC.
WHEREAS, Tustin City COde § 7418(d) requires prior approval of the City
Council expressed by resolution, where there is an actual change in control or where
ownership of more than 50% of the voting stock of a Cable Television System
Franchisee is acquired by a person or group of persons acting in concert, none of whom
already own 50% or more of the voting stock, singly or collectively; and
WHEREAS, AT&T Corporation, the parent company of the City's Cable
Television System Franchisee, MediaOne of Los Angeles, Inc., doing business as AT&T
Broadband, has announced on November 18, 2002 the completion of a merger with
Comcast Corporation and formation of a new parent company named AT&T Comcast
Corporation (or "Comcast Corporation"); and
WHEREAS, the City Manager has notified the Franchisee that the Tustin City
Code requires the consent of the City Council prior to the merger, and directed the
Franchisee to initiate the consent process on June 4, 2002; and
WHEREAS, the Franchisee acknowledged the City Manager's June 4, 2002
notice and stated its disagreement with the Tustin City Code consent requirement on
June 21, 2002; and
WHEREAS, the City Manager notified the Franchisee on July 12, 2002 that it will
be in violation of the franchise agreement and the Tustin City Code should AT&T
Corporation merge with Comcast Corporation without the City's consent, and once
again directed the Franchisee to initiate the consent process; and
WHEREAS, the Franchisee, AT&T Corporation, and Comcast Corporation still
have not acknowledged that the Tustin City Code requires City Council consent prior to
their merger; and
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WHEREAS, a recent audit of the Franchisee's customer service standards
indicates that the Franchisee is not meeting various customer service standards
adopted by the City and the Federal Communications Commission (FCC); and
WHEREAS, a recent audit of Franchisee's physical plant indicates that the
Franchisee is not meeting local and state electrical code standards; and
WHEREAS, AT&T-Comcast Corporation Submitted evidence to the City Council
of its legal, financial, and technical ability to control the franchisee; and
WHEREAS, the City Council is committed to protecting the public safety and
welfare of the City's residents.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, finds, determines and orders as follows:
SECTION 1. Pursuant to Tustin City Code §§ 7418(d) and based on the
foregoing facts and findings all of which are incorporated in this Section 1 by this
reference, the City Council consents to the merger between AT&T Corporation and
Comcast Corporation as parent of the franchisee, conditioned upon the following:
A. The Franchisee shall submit to the City by Decemeber 31, 2002,
adequate documentation certifying compliance of their physical plant with all
applicable California Public Utilities Commission and Electrical Code
requirements.
B. Pursuant to the AT&T offer letter dated October 29, 2002 and
submitted to the City by the Franchisee, The Franchisee shall pay to the City the
minimum Sum of Five Thousand Dollars to reimburse the City for physical plant
inspection costs by January 6, 2003.
C. The Franchisee shall submit documentation within sixty days
demonstrating compliance with FCC Customer Services Standards for the fourth
quarter of 2002.
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin on the 16 day of December, 2002.
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
RESOLUTION NO. O 2,,. - I '~O
02-120, 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 of the City of Tustin is five; that the above and foregoing Resolution was passed
and adopted at a regular meeting of the City Council held on the 16th day of December,
2002, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
City Clerk
T'b_.~mas,..WQ~tey,- Bone, Davert, Kawashima
None
None
None
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