HomeMy WebLinkAboutOrdinance No. 98-30 ox.DrNANCE No: 9:s-3 0
AN 4RDINANCE OF THE CITY OF FRIENDSWQOD, TEXAS, PROVIDTNGr
FOIt THE TRANSFER OF THE FRIENDSW�OD� TEXAS, CABLE
TELEVISIdN FRA�IC�IISE FROM TCI TKR 4F HOUSTQN, INC.TO T'EJtAS
CABLE PARTNERS� L. p.; PROVIDINC� FOR A CHANCrE IN ACTUAL
WORKING CONTROL FkQM TEXAS CABLE FAR7N�RS, L. P., TO TII+�l.E
WARNER CABLE; PR4VIDING �4R A CI-IANGE iN C4NTROL 1��t�A�I
TELE-CQMMUIVICATIONS, II�iC. TO AT&T CQRP.; �MPQSING CERTAI'N
CONI�ITIONS �OR C4NSENT; PRnVIDING FdR OT�IE�t MATTERS
RELATED TG THE SU13.IECT; AND PROVIAINt�'r FOR SEVERABIL]TY.
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WHEREAS, TCI TICR of Hous�on, Inc. ("Franchis+�e"), owrLS� operates, and n�aint�ins a
cable television system ("Syst�m"} withu� thc City of Frieadswood, Texas (the "Fraz�chisc
Authority"), pursuant to Ordinance No. 95-6, dated March 20, 1995 (the "Franchise"�, a�d th�
Franchisee is the duly authorized holder of the Franchise;ar►d
WT�EREAS, Time War�cr Entea�tai�ment AdvatnceJNewhouse Parmership ("TWE•AJN'),
a New Yark geaeral partnership two-tlairds owned by Time VJarncr Entcrtaiz�ncnt Co�pany,
L. P, ("TWE"}, an af#iliate of TWE-HJAt (togcthcr with TV1�-A1N, the"Time Waruer �arpaers'7,
two affiliates af the Fraachisee (the"TCI Partners'�, and T�xes Cable Partners, L. P., a De�aware
limited pannership owned 50% by the Time 'Warner Partn�rs and 504/a by the TCI Pa�rtne�s (t$e
"Partnership"), are partics tc> that ctitain Contributian Agreem�nt datod ss of Jurte 23, 1 g98 (the
"Contribution Agr�emcnt"), which pravidEs far ihe traasfer of tiie Systcm and thc Franc�ise to
the Partnership (tha term "Transfcr" sha�l inciudc any ne�cesgary trausfcrs of the Syste�n and
Franchise through one or more affi'iliatas of the �'raar.hisa} �t the cloeing contempla�ed by the
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Contributian Agreement (the "Closing"�; and
FwDrrct-rsx,►s c�9�.Er�a��v4s
V4�HEREAS, �t the Closing, the Partnership will et�ter into a Management A�reement
with Timc Wazner Cab1e, a division of'I'WE, providing for the managamtnt of tht Partncrship,
the Sy9�231y and the Franchise hy Time Warner Cable (th.e "ChRnge in Actual Wo�cireg
Control"); and
1NHEREAS, AT&T Corp., an affitia�ta of AT&T Corp., and Tele-Comrnunications, Inc.
("TCI"), aze partics to an A�reament and Pl�n af Restructuxing and Merg�r dated as o�Jua�e 23,
1998 (th� "AT&T Morgcr Agr�,ernent"�, which provides for AT&T Carp., acquiring 4ont�ai of
TCT, the uldmate parent of thc Fra�uhisoe a�d each TCI �artri�r, at tha closing contem�+lat�d by
the AT&.7 M�rger Agreemet�t(ti�e"TCC Ch�nSt of Control"}, a�nd
WHEREAS, �'ranchisee and the P�xxmership liave reqrustod con�ent by the Fra�chi�e
Authority to the 7'ransftr and, if applica.bte, the Change in Actt�al Workiag Contro� an�d th� TCI
Change of Control, in each case in�r�co�rda�ce with the rcquirements of the Franchise;atzd
WHER�AS, Sution 29.OI af the Franchisc provides that any such cansont by tha City
may prescribe conditions; and
VirHEREAS, Sectiaa 29.01 af the Fr�nc�i.se further provide� that, in tt�e abse�xce of
cxtraordinary• circwz�stances, the CitY sh�ll not consent to aay assignmr,�t or ��r of the
Franalii.se prior to thc substantial compXetion of the rep�aecment and upgrade af t�e CATV
System as provided for in the Franchise, unless the transfer or assignme»t would zrot ehan$c
control of the CATV System a8d tkte result wo�ild b�enefit tiae System and subscribetrs;s+nd
WHERFAS, the proposed Transfer to thc Partnership will change control of tt�e CATV
System and,thus,the excepdoa daes not appl�;and
WHEREAS, thc replacement a�nd upgradc af the CA`T'V' Syst�rn is not subste�ti�tly
camplete;�rtd
Fwoircl•'flexns c�s��4rizr�a
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�NHEREAS, cxtraardinary circumstances must exist for the City to cons�t ta the
assignment or transfer of thG�'ranchise; az�d
WHEREAS, the cambined finaneial resources of the P�rtnership and the Fartpership's
acceptance of the Frenchisa upon the canditions stated in this Urdinance witl ensur� ttixt the
rebuild and upgrade of the CATV Systexn is aom�lete�d as provided for herein, and, araoxd'xagly,
provides the extraordinary circumstances n�cessary for the cons�nt to the T�sfer the Franphise;
and
WHEREAS, thc Traz�sfex af the Frarrckuse is subject to thc conditions and a�eaanents
cantained in this Ordinance; and
WHEREAS, the Transfer and, if applicablc, the Cr.,uige in Actual Warking Ccntral aud
the TCI Change of Cantr�i are deemed io be ia the be,st intenst af the residcnts of the C�ty of
Friendswaod,Texas; now, thereforc,
H� TT t�Ri)AINED BY THE CITY C4CJNCIL �F TNE CI'I'Y 0�' FRIENDSWC)OD, STATE
OF TEXA.S:
ec ' , The facts and matters sct forth in the preamble af this 4rdvaanc�ee are
hereby fotu�d to 3e true snd correct.
Sec 'on . S�zbjxt to the cond.itions stated h�erein and the requiremen�s of the
Franchist, the City Council hereby �onsents to the Transfer af tl�e Franchise to Texas C�bie
Partners, L,F., a Delaware [imited partnorship own�d 50%by tbe Time Warnar Pa�r�aers ar�d 50°/u
by the TCI �artncrs (including, if applicablc, t�c Change in Actual Working Control from Texas
Cable Partners, �,. P., to Timc W�rner Cable, a division of Tti�, and, if applicabl�, t� T'CI
Changc of Contro] &om Tcle-Coinmwnicatians, Inc., to AT&T Corp.�, al1 in accord.az�x with tht
terms of the Franchise.
fnwnrrci-Tex�s c�s�.$ria►v4a
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5 et' n . The City Council's consont ta the Traasfer a.nd the Change i� A,ctua�
1Xlorking Cpntrol is expressly co�.ditianed upon a.nd subject to the I'arinership's agreCmant t�at:
a) The City shall t�ave the authority to �antinuo regul�ting the basi�c sc;cvic�
tier, equipment, aa�d installation rat�,s as provid�d by a�plicable local, statc, arrd �t�deml
law;
b) The City sha11 have the autharity tn, and sha11 not be decmed to hsve
waivtd the right to, callxt any uadtrpayment of fr�nchi9e fees;
c) The City shall have the autharity ta, and sha11 not ix dcemod to have
wair�od the right to,pursue and/ar resolvt any and all autstandic�g ra,te matters,
d� 'Iyc City sha11 have the autharity to raquire strict c�mpliancc wi#� ancy a�rd
all terms af the Franchise;
e) 'X`he City shall h�.ve the authority to cansid�r dusi.ng $'anchis� re�ewal
prpceedings, to the exto�t permitted ux�dor Title 47, Seetion 546 of the Uni1�d ��s
Cade, the past perfomzanca of Franchisee as if it w�re the past perfarman�ce ef the
Partnership;
� �� p�aership sha11 ass�ne all oblig,e.tions aad liabilities euzd�r the
Franchi�a acaniing prio� ta and a.Rer the date of the Closing of the Co�tri�rutian
Agreement(the"Closing Date");
g) The Parhiership, or any entity actia$ by, through, or on bGhalf pf t�e
partnership, shall not seek approval from tht Faderel Communication.s C�t�t�ssion
("FCC'°}to include the City within the pravisions of th�t certain Social �on�aet for Tia�e
Warner, FCC Memor�uadum Opittion and arder No. 95-478, adoptcd and rs9�Ceased
Novcmb�' 30, 1995, without �'irst obt�ining, ir► 'writiag, a t'o9ucst by the �ity to bc
included under the provisions of said Sacia! Cantract. I'he Partnership exFresslY waives
any rights or privilcges und�r the said Social Con�e�ct which arc incoosisten! or in
conflict herewith;
h) The P�ership sha11:
(1) gY Ycar end 1999, in accord�ne�a wich AitiGle X of tha �raacl�se,
complete the rebuild and u�agrade of the City's CATV 5ystcm ta meet or e�ccecd,
at s minimum,the fallowing tcchnica! standnrds:
a, a System bandwidth cnpa�city of at le�st 750 IviHz;
b. depioytncnt of fiber-to-node architecture, with a re.t3v.ction
af ampli�er cascades to a maximurn of four and a ma�cimum s3�' �a�'
pvrorrc�-rsx�+s c�ac.a��a�a.ros
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ampli�iers with a rnaximurn of thx'ce line toctenders per distributioa lime, to
improve sigrtal quality and reliability of the Systcm;
c. standby power of�t tc.�st two (2) hours duration far 100!/0
of all Systam clecttat�ics;and
(2) By year end 1999, compltte the imstallation of all nxes�ery plant
and equipment required to provide delivory af local sccess pro�nirt�
originating from Friendswood High School; and
;) 'Fhe Parw.ership, or any entity acting by, through, or on bchaif o�' tl�c
Partnership, si�all not cantest the City Cauncil's nuthority to imposa these aEddi�io�1
conditi�ns on the cansant granted ho�eein.
ecti n . This 4rdit�ance shall bc deemtd effcdiv� far thc pwposes of th� Tr�sfer
and the Change in Actual Warking Con�al anly upon the Cl,osing af the Contributio�A�re�neat
�nd upan fiting with thc City Secretary a written statement within ten (10) dnys th��eaf, dealy
exccuted, in the following form;
"To the Honorable Mayor snd City Cou�,cil af the Cxty of Friendswood,Texas:
For itself, i�s successors, and assigns. Texas Cabl� ParEncrs, L• P., a
Delaware 1"united partncrship duly autlnarized to da business in tbc State of Tex�s,
hereby acccpts that certain Frurchise Agreemont da�c+d March 20, 1995, emd
agrees tn be bound by all af its t�ertzas, conditioxts, e�nd provisians, �ubject to
applicable federal, statc, and lacal law, and furth�r a�recs to bc bound by t�te
tcrm�s, conditions, and ptovisioas of City of Friendsw4od, Tex�, Ordinancc No.
hi Or i .�e , pa�sssed, �pProved-► and adopted on [d� of ado t�u 'on of this
ina�], 1998.
FWDrfCI-TEXAg CABLEIIOIt?JDg
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TEXAS CABLE PAkTNERS,L. P.
$y:
Its:
Dated this day of_ _, I948,,,
Failure to provide the statcment reqairGd by this &ection shall intan that there is np cvnscnt
granted for the Transfer or the Changc in Actual Working Controt. This 4rdinnnca shall be
deemed effective far the purposo of th� TCI Chan�a af Control only upon the ctasi�g of the
AT&T Merger Agreement.
ecti n . Notwiths+tanding any lanSuag� i�th� Frr�nnchise nor this Ordinagce �o the
cantrary, the City's cons�nt to the Traasfcr af the Franchise, the Change in Actual. WQrking
cantiol, and the TGI Change of contra�, a11 as pmvided herair►,shall not be daemed to cocpaad the
rights and privilcges spocified in tiie Franchise w include the right and privilege ta pr�uid�basic
ioeal telecommunicaii��s serviec or locai exchange telephone service, as such terms aze d�fincd
by § 51.402 0�'the Texas Uti[ities Code (the Tex$s Public Utility Regulatory Act), within the
City, wit}►out having first obtainzd a separate fran��ise from th�c City to provid�such s�rvicre•
Se " n . This Ordinance shall have the force of a conti.nuing agceemaenR with
Franchisee,the Fartnersttip,and the Crty.
�. In the event aay clausc phrase, provisi�n,seatence, or part of this Ordi.nartce
or the application of the sama ta �ny person or circw�tstances shnll for anY nason b�._ac�udged
invalid or held unconstitutional by a court of competer4t jurisciiction, it shaLl not affoCt,-impaix'� or
invalidate this Ordinance as a whale or any part ar provision he�ccof oth:er than the p�rt dec�arod to
be invatid or unconstitutionat; and th� City Council of th� City of Friendswood, Tex$s, c�CCl�s
p9Vp/TCI-TEXAS GABl.FJlolf2/9$
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that it would have passcd each and every part of the samc notwriths#anciin�tl�z omi�sion ofar►y such
part tbus declared to bt invalid or unconsxitutional,whether there be oae ar more parts.
PASSEiy AND APPROVED on first reading tba.s 1`-'� daY of�toher . �998.
PASSET�, APPR4VED, and AD4PTED �n second and funal reading ttus 2n�d�.y �f
November , I�9$.
� �,
� ��
i�atold L. �hitakcr
Mayar
ATTEST
. '•F
i7eloris 1VIcKenzie, �
City Sxretary
FwD1'fCl•TEXAS CARLPJI�l12l98
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