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HomeMy WebLinkAbout1523RESOLUTION NO. /5~ 3 A RESOLUTION of the City Council of the City of Kent, Washington, approving the change of control of the cable communications franchise. WHEREAS, TCI of Washington, Inc. ("Franchisee") is duly authorized by the City of Kent (the "Franchisee Authority") to operate and maintain a cable communications system ("the System") in Kent, Washington pursuant to a franchise granted by the Franchise Authority under Ordinance No. 3108 ("the Franchise"); and WHEREAS, pursuant to the Agreement and Plan of Restructuring and Merger among AT&T Corp. ("AT&T"), a newly formed wholly owned subsidiary of AT&T ("Merger Sub"), and Tele-Communications, Inc., the parent of Franchisee ("TCI"), dated as of June 23, 1998 (the "Merger Agreement"), Merger Sub will merge with and into TCI with TCI as the surviving corporation in the merger, and as a result of the transactions contemplated by the Merger Agreement, TCI will become a wholly owned subsidiary of AT&T (the "Transactions"); and WHEREAS, Franchisee will continue to hold and be bound by all terms and conditions of the Franchise after consummation of the Transactions; and WHEREAS, FCC Form 394 with respect to the Transactions has been filed with the Franchise Authority; and WHEREAS, the parties have requested consent by the Franchise Authority to the Transactions; NOW THEREFORE, 1 TCI I AT&T Merger THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Franchise Authority hereby consents to and approves the Transactions under the terms of the Master Cable Television Ordinance #31 07 (Kent City Code Section 7.12.110) and the Franchise and applicable law, provided that: A. TCI, as a wholly owned subsidiary of AT&T, confirms that as Franchisee, it will continue to be bound by the terms of the Master Cable Television Ordinance No. 3107, and the Franchise, and any amendments thereto; and B. In accordance with Exhibit 4 of the FCC Form 394, if, in the future, AT&T offers services other than those currently authorized by the Franchise and any applicable laws, AT&T will obtain any necessary federal, state or local authorization prior to the introduction of such services over Franchisee's System. Implicit in this statement is the obligation to pay to the Franchise Authority any fees, taxes or other assessments as may lawfully be levied. Specifically should Franchisee, at any time lease any portion of the system to other entities providing such services as Internet Access or other data transmission then, in accordance with the Franchise, these lease payment revenues will be included in the calculation of gross revenues; and C. The final merger agreement consummated by the parties and approved by the federal government shall not contain any material changes from the facts submitted in Franchisee's request for consent to the change of control submitted to the Franchise Authority. If material changes are made then the City shall require a resubmission of the facts and revised FCC Form 394. SECTION 2. Severability. If any section, subsection, paragraph, sentence, clause, or phrase of this resolution is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this resolution. SECTION 3. Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. 2 TCI I AT&T Merger SECTION 4. Effective Date. This resolution shall take effect and be in force immediately upon its passage. PASSED at a regular open public meeting by the City Council ofthe City of g~· /i Kent, Washington, this day of A.L_c C•-n 1-< L-/, 1998. 0tlv AI CONCURRED in by the Mayor of the City of Kent this 7.... day of ~u__yd..e.·t-· , 1998. ATTEST: BRENDA JACOBER, \ APPROVED AS TO FORM: I hereby certifY that this is a true and correct copy of Resolution No:j_5 ~ 3 passed ,{D the City Council of the City of Kent, Washington, the o ' day of & (.£a+tArC'V , 1998. P:\LAWI.R~o~olution\TCI AT&T merger.C:.Jc 3 TCI I AT&T Merger