HomeMy WebLinkAboutCity Council - 5985 RESOLUTION NO. 5985
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON
BEACH APPROVING RESOLUTION NO. 1989-1 OF THE BOARD OF
DIRECTORS OF THE PUBLIC CABLE TELEVISION AUTHORITY APPROVING
A SETTLEMENT AGREEMENT BETWEEN THE PUBLIC CABLE TELEVISION
AUTHORITY, KBL CABLE, INC. , AND KBLCOM, INC. PROVIDING FOR
TRANSFER OF OWNERSHIP AND CONTROL OF THE CABLE COMMUNICATIONS
FRANCHISE TO KBL CABLE, INC. AND ITS PARENT, KBLCOM, INC. FOR
AMENDMENT OF THE FRANCHISE AND FOR EXTENSION OF THE CABLE
FRANCHISE UNTIL THE YEAR 2004 ALONG WITH A CABLE SYSTEM
UPGRADE TO BE COMPLETED NOT LATER THAN DECEMBER 31, 1996 .
WHEREAS, in May, 1979, the PCTA adopted Resolution No. 1979-3
granting a franchise (the "Conditions of Operation" (.or "Franchise")
to Dickinson Pacific Cablesystems, a general partnership which is
now owned by Rogers Cablesystems of the Southwest, Inc. (the
"Franchisee") to construct and operate a cable television system
with the Cities of Fountain Valley, Huntington Beach, Stanton, and
Westminster; and,
The FRANCHISE has subsequently been amended in 1984 and 1987;
and,
KBL, and Rogers U.S. Holding Co. ("RUSH") , the parent company
of Franchisee, have entered into a Stock Purchase Agreement dated
August 9, 1988 ("Stock Purchase Agreement") , and upon the "Closing
Date" as defined therein there will be effected a transfer of
ultimate control of the Franchisee, including the franchise rights
and obligations under the Franchise to KBL and its parent
corporation KBLCOM Incorporation ("KBLCOM") ; and,
Rogers U.S. Cablesystems, Inc. ("RCI") is the parent of RUSH;
and,
RCI and RUSH wish to divest themselves of any control over or
interest in the Franchise, be released from any and all liabilities
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5985
under the Franchise and substitute KBL and KBLCOM (collectively
"Transferees") in their place; and,
The Board of Directors of the Public Cable Television
Authority (PCTA) adopted Resolution No. 1989-1 at their public
meeting on the 1st day of February, 1989; and,
The City of Huntington Beach is interested in approving the
transfer of ownership.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the
City of Huntington Beach, that Resolution No. 1989-1 which provides
for the transfer of ownership of the cablesystem be ratified; and,
BE IT FURTHER RESOLVED that the City Council of the City of
Huntington Beach accept the Settlement Agreement which binds KBLCOM
to the provisions of the original franchise agreement and extends
the expiration of the franchise agreement until the year of 2004 ;
and, further requires transferees to complete an upgrade of the
cable system no later than December 31, 1996 and post a
$7, 000, 000 . 00 "Security Instrument" therefor.
BE IT FURTHER RESOLVED the City Council of the City of
Huntington Beach accepts the offer on the part of the PCTA from
KBLCOM in the amount of $10 million as compensation for the buyout
provision; and,
BE IT FURTHER RESOLVED that the City Council does hereby give
its consent to the above transfer of control to KBL and KBLCOM.
5985
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PASSED AND ADOPTED, the 21st day of February, 1989, at a
regular meeting of the City Council of the City of Huntington Beach.
w
Mayor
ATTEST: APPROVED AS TO FORM:
•
City Clerk �v�- City Attorney
REVIEWED AND APPROVED: I ITIATED AND APPROVED:
City Administrator Deput City Administrator
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Res. No. 5985
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY Of HUNTINGTON BEACH
I, CONNIE BROCKWAY, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on the 21st day
of February , 19 89 by the following vote:
AYES: Councilmembers:
Green, Winchell , Bannister, Mays, Silva
NOES: Councilmembers:
MacAllister, Erskine
ABSENT: Councilmembers:
None
City Clerk and ex-offTtlo Cler
of the.City Council of the City
of Huntington Beach, California