HomeMy WebLinkAboutCity Council Resolutions (R-05-2624)-11/15/2005
RESOLUTION R-05-2624
A RESOLUTION OF THE CITY OF COLLEYVILLE, TEXAS, PROVIDING
CONDITIONAL APPROVAL OF CONSENT OF THE TRANSFER OF A CABLE
FRANCHISE AGREEMENT FROM COMCAST CABLE OF TEXAS II, INC. TO C-
NATIVE EXCHANGE II, L.P.; PROVIDING FOR THIS RESOLUTION TO BECOME
NULL AND VOID IN CERTAIN CIRCUMSTANCES AS SET FORTH HEREIN;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, Comcast Cable of Texas II, Inc. (hereinafter referred to as "Franchisee") is
currently a franchisee for cable services in the City of Colleyville, Texas
(the "City") pursuant to Ordinance No. 0-03-1413 of the City (the
"Franchise"); and
WHEREAS, Franchisee is a wholly owned subsidiary of Comcast Corporation
("Comcast"); and
WHEREAS, pursuant to an Exchange Agreement between Time Warner Cable, Inc.
(''Time Warner Cable"), Comcast and certain related entities, Comcast will
cause the Franchisee to transfer the cable system owned and operated by
Franchisee within the City and the Franchise to C-Native Exchange II, LP.,
a limited partnership authorized to conduct business in the State of Texas
("New Franchisee"), which will become an indirect subsidiary (but subject
to the direction and control) of Time Warner Cable (the "Transaction"); and
WHEREAS, Franchisee and Time Warner Cable have requested the City's consent to
transfer of the Franchise and have filed a FCC Form 394 with the City
requesting such consent; and
WHEREAS, C-Native Exchange II, L.P. agrees to abide by all the terms, conditions,
standards, duties, responsibilities, and obligations of the franchisee under
the Franchise upon the closing of the Transaction; and
WHEREAS, C-Native Exchange II, L.P., agrees that, upon the closing of
theTransaction, it shall be the successor entity to the incumbent cable
service provider, the Franchisee, pursuant to Texas law, including, without
limitation, Chapter 66, Texas Utilities Code, [Sec. 66.004 (a) and (c)] as
adopted by S.B. 5, 79th Texas Legislature, 2nd Called Session" and as
such will be operating under the Franchise being transferred from the
current incumbent cable provider in the City and will be the incumbent
cable provider in the City under applicable law as if it were the incumbent
cable provider in the City under the Franchise as of September 1, 2005
and had at all times been the incumbent cable provider in the City
thereunder since that date regardless of the actual date of the Franchise
transfer; and
Resolution R-05-2624
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HEREAS, the City is willing to consent to the proposed transfer as detailed in the
FCC Form 394, pursuant and subject to the conditions set forth herein.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OLLEYVILLE, TEXAS:
Sec. 2
Sec. 3.
Sec. 4.
Sec. 5.
THAT all matters stated in the above preamble to this Resolution are
found to be true and correct and are incorporated herein as if copied in
their entirety.
THAT time Warner Cable and New Franchisee agree that upon the
closing of the Transaction, New Franchisee will abide by all terms of the
Franchise and its amendments, and all other ordinances of the City of
Colleyville.
THAT new Franchisee agrees that it will provide service pursuant to the
requirements of the Franchise and its amendments after the closing of the
Transaction.
THAT subject to the closing of the Transaction and Time Warner Cable
and the New Franchisee's compliance with the provisions contained
herein, the City of Colleyville accepts the transfer of the Franchise to C-
Native Exchange II, L.P. Such acceptance does not preclude further
investigation and action by the City of any potential Franchise violations or
non-compliance issues, including those occurring prior to the closing of
the Transaction. With respect to any violation or non-compliance issues
that are not extinguished prior to closing of the Transaction, the City will
have all rights following the closing of the Transaction to continue
investigation of such matters and to pursue action as determined by the
City in connection therewith under the terms set forth in the Franchise.
THAT time Warner Cable and New Franchisee acknowledge that the City
has certain Franchise fee audit rights pursuant to the Franchise. Time
Warner Cable and New Franchisee assure that they do not have any
contractual or other restrictions that will limit the ability of the New
Franchisee to remit Franchise fees as provided in the Franchise or limit
the New Franchisee's ability to provide all relevant information concerning
the payment of Franchise fees as required by the Franchise. The first
payment of Franchise fees after Time Warner Cable and New Franchisee
assume control of the Franchise will be accompanied by a statement
itemizing the revenue categories by account on which Franchise fees are
being paid with a statement as to any differences between the calculations
by Time Warner Cable and the Franchisee.
Sec. 6.
Sec. 7.
Sec. 8.
Sec. 9.
Sec. 10.
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Page 3 of 4
THAT any actions which have the effect of circumventing payment of any
lawfully required ordinance fees and/or evasion of payment of the
ordinance fees by non-collection or non-reporting of gross receipts,
bartering, or any other means which evade the actual collection of
revenues for businesses authorized by New Franchisee are prohibited.
Pursuant to the Texas Constitution, the City is prohibited from granting
anything of value without compensation. The City has the right to audit all
records relating to the calculation of the Franchise fee as provided in the
Franchise.
THAT time Warner Cable will provide to the City within 45 calendar days
following the date of closing of the Transaction at the City's discretion one
of the following: 1) a guarantee in the form attached hereto, guaranteeing
the performance of the New Franchisee under the terms of the Franchise
and that all such terms of the Franchise, as noted in the original document
and all amendments and transfers, will be fulfilled; or 2) a guarantee
consistent with the most favorable such guarantee agreed to by Time
Warner Cable in the State of Texas guaranteeing the performance of the
New Franchisee under the terms of the Franchise. Failure to provide such
guarantee within the specified time frame will result in the automatic and
immediate repeal of this Resolution without any further action by the City
Council of the City of Colleyville, and this Resolution shall thereafter be
deemed null and void.
THAT by granting consent to the transfer of the Franchise, the City does
not waive and specifically retains any right to regulate and receive
compensation as allowed by law for all Cable Services offered over the
Cable System. Upon request and if the City is lawfully allowed to make
such a request, Franchisee shall inform the City of any uses of the Cable
System by persons who are not Cable Operators.
THAT in the event that the Transaction is not closed by October 1, 2006,
this Resolution will become and shall be deemed to be null and void. Until
the closing of the Transaction, the Franchisee (Comcast Cable of Texas II,
Inc.) will continue to be responsible for the performance of the terms of the
Franchise. Also in the event that the Transaction does not close by
October 1, 2006, Time Warner Cable will reimburse the City for all out-of-
pocket costs incurred in review of the Form 394 and related actions up to
the amount of $500.
THAT the provisions of this Resolution are severable, and if any section,
paragraph, subdivision, clause, phrase, provision or word of this
Resolution shall be judged, by a final, non-appealable judicial order or
Resolution R-05-2624
Page 4 of 4
judgment, to be invalid or unconstitutional, such order or judgment shall
not affect the remainder of this Resolution.
Sec. 11.
THAT if any word, sentence, paragraph, subdivision, clause, phrase or
section of this Resolution be adjudged or held to be void or
unconstitutional, the same shall not affect the validity of the remaining
portions of said Resolution which shall remain in full force and effect.
Sec. 12.
THAT this Resolution shall take effect upon its adoption in accordance
with the provisions of the City Charter.
AND IT IS SO RESOLVED
PASSED BY A VOTE OF 0" AYES, t) NAYS AND 0 ABSTENTIONS ON
THISTHE~ DAYOF r~,?.vv 2005.
ATTEST: CITY OF COLLEYVILLE
.~ it
ynthia Singleton, TRMC
City Secretary