HomeMy WebLinkAbout01061999 Perlin Staff ReportSARATOGA CITY COUNCIL
EXECUTIVE SUMMARY NO.
AGENDA ITEM
MEETING DATE: JANUARY 6, 1999
CITY MANAGER:
ORIGINATING DEPT.: CITY MANAGER
PREPARED BY:
SUBJECT: Resolution consenting to change of control of CATV Franchise
RECOMMENDED MOTION(S):
Move to adopt the attached Resolution consenting to the change of control of the CATV
franchise.
REPORT SUMMARY:
In June, 1998, TCI announced its proposed merger with AT&T Corp. According to TCI, under
the terms of the merger agreement, AT&T will become the parent company of TCI. TC! will
continue to exist as a corporation and a wholly owned subsidiary of AT&T. In addition, all of the
cable television franchises held by TC! entities will continue to be held by those entities. This
means that the merger will not result in the transfer of the franchise. Rather, the current cable
franchisee, TCI, will continue to hold the franchise, and local management and employees of TC!
will remain in place.
Under the provisions of Section 7 of the franchise transfer agreement with TCI, and pursuant to
Section 4-25.060 of the Municipal Code, TC! must obtain the City's permission to transfer the
franchise or to change ownership or control of the franchise. In this case, TC! requests a change
of control. In addition, TC! has filed the Federal Communication Commission's Form 394, which
allows the City to assess the new controlling entity's (AT&T' s) financial, legal and technical
qualifications.
The City Attorney and staff have reviewed all documents relating to the merger, including FCC
Form 394, and have found them to be in order. The City Attorney has advised that it is not
necessary to amend or otherwise change the current franchise agreement since there is no transfer
of the franchise. Instead, consent to change control of the franchise can be granted by adopting
the attached Resolution. Further, the City has been advised that if no action is taken by January
14, 1999, (120 days from the date the City was notified of the request for consent to change of
control), then under federal law consent will be deemed to be granted.
FISCAL IMPACTS:
None anticipated. All of the financial obligations of TCI in the current franchise agreement will
continue to exist. Further, TCI has paid the $5,000 transfer fee to the City specified in Section
4-25.060(d)(4) of the City' s CATV Ordinance.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Nothing additional.
CONSEQUENCES OF NOT ACTING ON RECOMMENDED MOTION(S):
The Resolution will not be adopted. As previously stated, under federal law, consent by the City
for change of control of the franchise will be deemed granted on January 14, 1999, if the
Resolution is not acted upon.
FOLLOW UP ACTIONS:
TCI will be notified of the passage of the Resolution.
ATTACHMENTS:
1. Resolution consenting to change of control of CATV franchise.
2. Municipal Code Section 4-25.060(d).
3. Franchise Transfer Agreement - Section 7.
4. Letters from TCI dated September 14 and June 24, 1998 with attachments.