CC Resolution 2000-080 RESOLUTION NO. 2000-80
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, GRANTING THE CITY MANAGER AUTHORITY TO DENY
WITHOUT PREJUDICE THE TRANSFER OF CONTROL OF A CABLE
TELEVISION FRANCHISE GRANTED TO AN AFFILIATE OR SUBSIDIARY OF
TIME WARNER, INC.
WHEREAS, the City Council of the City of La Quinta (the "City") adopted an
Ordinance establishing regulations for granting and operating cable television
systems (hereafter referred to as the "Ordinance"); and
WHEREAS, pursuant to the Ordinance, the City entered into a Franchise
Agreement with an affiliate or subsidiary of Time Warner, Inc. (hereinafter referred
to as the 'Franchisee"), (hereinafter referred to as the "Franchise Agreement").
The Ordinance and the Franchise Agreement constitute, and will be hereinafter
referred to as the "Franchise"; and
WHEREAS, the Ordinance requires City Council consent to any transfer or
change of control of the Franchise or the Franchisee; and
WHEREAS, FCC Regulations (47 CFR Section 76.502(1)(1) require that in
order for a cable operator to obtain approval of a transfer or change in control of
the Franchise or the Franchisee, it must submit an FCC Form 394 and any other
information as may be required by the City; and
WHEREAS, the Franchisee has requested the consent of the City to transfer
control of the Franchise and Franchisee to AOL Time Warner, Inc. (the
"Transferee"); and
WHEREAS, the Transferee has filed an FCC Form 394 with the City
requesting City Council approval of the transfer of control of the Franchise
Agreement and Franchisee to the Transferee (hereinafter referred to as the
"Transfer"); and
WHEREAS, in support of its Form 394 Application, the Franchisee and the
Transferee have submitted to the City certain documents which are on file with the
City Clerk, and are collectively referred to as the "Transfer Documents;" and
Resolution No. 2000-80
Transfer of Control/Cable Television
Adopted: 7/5/2000
Page 2
WHEREAS, the City, through its attorneys and consultants, submitted an
Information Request to the Franchisee and Transferee on or about February 15,
2000 (the "Information Request"); and
WHEREAS, the Franchisee and Transferee have not fully and completely
responded to the Information Request; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta does order as follows:
1. The City Manager, Assistant City Manager, City Attorney, the City's
Special Counsel, outside consultants designated by the City, or their designees are
hereby authorized to commence review and analysis of the FCC Forms 394 and
obtain such additional information which they determine necessary to properly
analyze and make recommendations upon the FCC Form 394.
2. The City Manager is hereby granted specific authority to deny the FCC
Form 394 without prejudice, and the approvals requested therein, for the following
reasons:
A. Failure or refusal to file a proper or complete FCC Form 394 with
all information required therein.
B. Failure or refusal to provide all documents and information
requested by City Staff, Special Counsel, and outside consultants retained by
the City.
C. Failure or refusal to reasonably cooperate with City Staff, City
Attorney, Special' Counsel and outside consultants retained by the City in
undertaking due diligence investigations including, but not limited to,
physical inspections of the cable television system and inspection of records
relating thereto.
D. Failure or refusal to demonstrate compliance with the Franchise,
the Ordinance, the Cable Communications Policy Act of 1984 (the "1984
Cable Act") the Cable Television Consumer Protection Act of 1992 (the
"1992 Cable Act"), the Telecommunications Act of 1996 (the "1996 Act"),
any and all implementing regulations of the Federal Communications
Commission, or any other applicable local, state or federal law.
Resolution No. 2000-80
Transfer of Control/Cable Television
Adopted: 7/5/2000
Page 3
E. Failure of the Franchisee and/or Transferee to timely execute a
Transfer Agreement acceptable to the City.
F. Failure of the Franchisee and/or Transferee to agree to conditions
of approval determined by the City Manager to be reasonably necessary to
mitigate the concerns and issues as determined by City Staff.
3. The City Manager is hereby authorized, without further action of the
City Council, to deny without prejudice any future FCC Form 394 filed by the
Operator, or any related party, for any of the reasons set forth in Paragraph 2.
4. Any decision made by the City Manager pursuant to the authority
granted in this Resolution shall be deemed a decision of the City Council for the
purposes of Section 617 of the 1992 Cable Act and the implementing regulations
of the Federal Communications Commission.
PASSED, APPROVED and ADOPTED this 5th day of July, 2000, by the
following vote:
AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pe~a
NOES: None
ABSENT: None
JO
City of La Quinta, California
ATTEST:
J~S~REEK, CMC/AAE, City Clerk
City of La Quinta, California
(City Seal)
Resolution No. 2000-80
Transfer of Control/Cable Television
Adopted: 7/5/2000
Page 4
APPROVED AS TO FORM:
M.K
City of La Quinta, California