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CC Resolution 1992-101^"CX RESOLUTION NO. 92-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA APPROVING A SECOND AMENDMENT TO CABLE LICENSE AGREEMENT AND CONSENTING TO THE TRANSFER AND ASSIGNMENT OF CABLE FRANCHISE WHEREAS, on May 21, 1986, the City of La Quinta the City") and Coachella Valley Television CVTV"), a division of Palmer Communications Incorporated1 entered into that certain Cable License Agreement" whereby the City granted to CVTV a nonexclusive cable television franchise in accordance with La Quinta Municipal Code, Chapter 5.10; and WHEREAS, on April 7, 1992, by Resolution No. 92-35, the City Council of the City approved CVTV*s application for transfer and assignment of the cable television franchise from CVTV to Palmer Cable Associates1 a partnership of which Palmer Communication Incorporated was to be the general partner and own ninety-nine percent 99%); and WHEREAS, the City Council*s consent to the foregoing transfer and authorization for CVTV to grant a first lien and security interest in its assets was to be effective upon the execution of a First Amendment to Cable License Agreement First Amendment") by the City and CVTV and the closing of the transfer and first lien transactions; and WHEREAS, CVTV has agreed to negotiate a new cable television franchise agreement and has given timely notice requesting renewal of the franchise under 47 U.S.C. Section 546; and WHEREAS, CVTV notified the City that CVTV did not intend to close on the transfer and assignment of the cable television franchise from CVTV to Palmer Cable Associates; and WHEREAS, on September 10, 19g2, CVTV sent a written request to the City requesting that the City Council rescind Resolution No. 92-35, and instead approve CVTV*s new request to transfer the cable television franchise to Colony Cablevision of California, a division of Providence Journal Company Colony"); and WHEREAS, La Quinta Municipal Code * 5.10.090(D) provides that a cable television franchise cannot be transferred without prior consent of the City Council expressed by resolution, and then only under such conditions as may therein be prescribed; and BIB] 08-06-1998-U01 11:11:30AM-U01 ADMIN-U01 CCRES-U02 92-U02 101-U02 ^"CX 5, WHEREAS, Colony has agreed, as a reasonable condition to the City Council of the City approving the transfer of the CvTV cable television franchise to Colony, to negotiate a new cable television franchise agreement with the City; and WHEREAS, the City desires assurance that the renegotiation of the Cable License Agreement will be conducted in a good faith manner by the parties and will be concluded in a timely fashion and such assurance is provided in the Second Amendment to Cable License Agreement attached hereto as Exhibit A; and WHEREAS, the City*s consultant has reviewed CVTV's proposed transfer of the cable television franchise to Colony and recommends approval of the proposed transfer subject to certain understandings being reached between the City and CVTV and/or Colony. NOW, THEREFORE, the City Council of the City of La Quinta does resolve as follows: Section 1. The City Council hereby approves the Second Amendment to Cable License Agreement" in the form attached hereto as Exhibit A, and authorizes it to be executed on behalf of the City following its execution by CVTV and Colony. Section 2. The City Council hereby approves and consents to CVTV*s application for transfer and assignment of the cable television franchise from CVTV, a division of Palmer Communications Incorporated, to Colony, a division of the Providence Journal Company, with such approval and consent expressly contingent upon the following: a. Colony agrees that the City and Colony will reach agreement by June 30, 1993 as to the proper accounting and computation of the five percent 5%) franchise fee under the Cable License Agreement. b. Colony agrees that the City and Colony will reach agreement by June 30, 1993 as to the proper accounting and computation for advertising revenues generated under the Cable License Agreement. c. That CVTV and/or Colony deposit for the benefit of the Access Channel * all unpaid annual payments under Section 7.1 of the Cable License Agreement into an interest bearing escrow account. d. That Colony agrees to reimburse the City for its reasonable costs and expenses incurred in connection with renegotiating the Cable License Agreement. 12/21/92 3913Q/2588/000 2- BIB] 08-06-1998-U01 11:11:30AM-U01 ADMIN-U01 CCRES-U02 92-U02 101-U02 ^"CX U BE IT FURTHER RESOLVED, that the consents herein granted and the authorization herein given shall only be effective upon the execution of the Second Amendment to Cable License Agreement by the City, CVTV and Colony and the closing of the foregoing transfer and assignment and Colony shall promptly notify the City upon such closing. PASSED, APPROVED AND ADOPTED this 15th day of December, 1992 by the following vote: AYES: Council Members Banqerter, Sniff & Mayor Pena NOES: None ABSENT: Council Members Franklin and Perkins ABSTAIN: None CITY OF LA QUINTA DATED: By STANLEY SNIFF* Mayor *Tem APPROVED AS TO FORM: Dawn C. Honeywell, City Attorney 12/21/92 3913Q/2588/OOO 3- BIB] 08-06-1998-U01 11:11:30AM-U01 ADMIN-U01 CCRES-U02 92-U02 101-U02 ^"CX a EXHIBIT A SECOND AMENDMENT TO CABLE LICENSE AGREEMENT THIS SECOND AMENDMENT TO CABLE LICENSE AGREEMENT the Second Amendment"), is entered into this day of 1992, by and among the City of La Quinta the City"), a municipal corporation of the State of California, Coachella valley Television, a division of Palmer Communications, Inc., a Delaware corporation CVTV") and Colony Cablevision of California, a division of Providence Journal Company Colony"). R E * I T A L *: WHEREAS, on May 21, 1986, the City and CVTV entered into that certain Cable License Agreement" whereby the City granted to CVTV a nonexolusive cable television franchise in accordance with La Quinta Municipal Code, Chapter 5.10; and WHEREAS, CvTv has proposed to transfer and assign its cable television franchise granted by the Cable License Agreement to Colony; and WHEREAS, La Quinta Municipal Code 5.10.090(D) provides that a cable television franchise cannot be transferred without prior consent of the City Council expressed by resolution, and then only under such conditions as may therein be prescribed; and WHEREAS, CvTv and Colony have agreed, as a reasonable condition to the City Council of the City approving the transfer of the CVTV cable television franchise to Colony, for Colony to negotiate a new cable television franchise agreement with the City; and WHEREAS, CvTv has agreed to negotiate a new cable television franchise agreement and has given timely notice requesting renewal of the franchise under 47 U.S.C. 546; and WHEREAS, the City desires assurance that the renegotiation of the Cable License Agreement will be conducted in a good faith manner by the parties and will be concluded in a timely fashion. NOW, THEREFORE, in exchange for the mutual promises contained herein and for other valuable consideration, receipt of which is hereby acknowledged, the City, CVTV and Colony agree to amend the Cable License Agreement as follows: BIB] 08-06-1998-U01 11:11:30AM-U01 ADMIN-U01 CCRES-U02 92-U02 101-U02 ^"CX U, 1. Section 1.4 of the Cable License Agreement as amended by the First Amendment is deleted in its entirety and replaced in its entirety to read as follows: 1.4 Duration. Except as qualified by Section 1.5 below, the term of the License shall be fifteen 15) years from the effective date hereof at which time it shall expire and be of no force and effect." 2. Section 1.5 of the Cable License Agreement as amended by the First Amendment is stricken in its entirety and replaced in its entirety to read as follows: 1.5 Renewal. Immediately upon the adoption of a resolution by the City Council of the City approving the Grantee*s application for transfer and assignment of its License to Colony Cablevision of California, a division of Providence Journal Company Colony") the Resolution"), Colony shall be deemed to have been assigned the written request for renewal of its License that was originally filed by CVTV. Colony shall pay a filing fee of Seven Hundred and Fifty Dollars $750) in connection with the renewal negotiations. The procedures and standards for renewal shall be consistent with those set forth in 47 U.S.C. S 546 as amended. The parties have agreed to proceed under the informal renewal process set forth in 47 U.S.C. S 546(h), as amended. Colony and the City shall negotiate the renewal of the License diligently and in good faith and for a period not to exceed two 2) years from the date of approval by the City Council of the City of the resolution the Renegotiation Period") and Colony shall reimburse the City for the ***ye5 reasonable costs and expenses incurred in connection with the renewal process during the Renegotiation Period. If, within the Renegotiation Period, the License is renewed, the renewal term shall be for such years and upon such conditions as the City and Colony shall agree. Should renewal negotiations not be completed prior to the expiration of the Renegotiation Period, then, notwithstanding Section 1.4 above, the term of the License shall expire upon the second anniversary of the date of adoption of the Resolution and be of no force and effect and Colony shall have no right or authority to 12121/92 3914Q/25S8/O0O 2- BIB] 08-06-1998-U01 11:11:30AM-U01 ADMIN-U01 CCRES-U02 92-U02 101-U02 ^"CX 5' continue operation of its cable television system pursuant to the terms and conditions of its License." 3. Except as amended herein, the Cable License Agreement shall remain in full force and effect and all provisions of the Cable License Agreement are incorporated herein by this reference. IN WITNESS WHEREOF, the City, CVTV and Colony have executed this Second Amendment as of the date and year first above written. APPROVED AS TO FORM: CITY OF LA QUINTA a municipal corpo ion STRADLING, YOCCA, CARLSON & RAUTH By: Dawn C. Honeywel, ATTEST: City Attorney City Clerk PALMER COMMUNICATIONS, INC., dba Coachella Valley Television, a Delaware corporation By: Its: COLONY CABLEVISION OF CALIFORNIA, a division of PROVIDENCE JOURNAL COMPANY, a corporation By: Its: 12/21/92 3914Q/25B8/OOO 3- BIB] 08-06-1998-U01 11:11:30AM-U01 ADMIN-U01 CCRES-U02 92-U02 101-U02