CC - Item 2A - Res. 98-54 RESOLUTION NO. 98-54
A RESOLUTION OF THE CITY COUNCIL OF
THE CI'T'Y OF ROSEMEAD DENYING WITHOUT
PREJUDICE THE APPLICATION OF PAUL G.
ALLEN AND CHARTER COMMUNICATIONS
ENTERTAINMENT H, LLP AND RELATED
COMPANIES TO ASSIGN AND TRANSFER
CONTROL OF TIE NON-EXCLUSIVE CABLE
-TELEVISION FRANCHISE IN THE CITY OF
ROSEMEAD TO PAUL G. ALLEN
WHEREAS, the City of Rosemead ("CITY") granted to the predecessors of Charter
Communications Entertainment H, L.P. a franchise as set torah in the franchise agreement dated
June 27, 1985, to own and operate a cable television system in the City of Rosemead; and
WHEREAS, on July 29, 1998 Charter entered into a Purchase Agreement (the
"Agreement") with Paul G. Allen ("Buyer"); and
WHEREAS, the Agreement provides for the sale of stock, transfer of control and the
restructuring of Charter; and
WHEREAS, Charter and Buyer ("Applicants") filed an FCC Form 394 Application for
Franchise Authority Consent to Assignment or Transfer of Control of Cable Television
Franchise with CITY on or about August 18, 1998; and
WHEREAS, the CITY has duly conducted a thorough review and investigation into the
legal, technical and financial qualifications of the Buyer to own and operate the cable television
system in light of the above-referenced FCC Form 394; and
WHEREAS, the CITY has reviewed the FCC Form 394, all supplemental information
submitted in relation thereto, and the various Staff reports and related documents; and
WHEREAS, the City has determined that it the Buyer does not have the requisite
technical qualifications to own and operate the cable television system; and
WHEREAS, the CITY has determined that it would not be in the public interest to
approve the Transfer at this point in time and has determined that it would be in the public
interest to disapprove the Transfer without prejudice subject to future ar rt n y erq
CI�uK i�• tiG�EN
NOW, T1iEREFORE, BE IT RESOLVED, that:
DEC 151998
SECTION 1.
ITEM No. L- A 2'
1. The recitals above are hereby declared to be true, r c an, correct.
SENT BY' tl'ALLIN KRESS REISMAN ; 12- 9-98 ; 4:32PM ; 13101 450-0506- 818 307 9218:# 5/ 6
2. The transfer of control of the Franchise and Franchisee from Charter to the
Buyer, as described in the FCC Farm, is hereby disapproved for the
following reasons:
(a) The Applicants have failed to timely provide all necessary
additional information requested by the City relating to the
Transfer's potential impact upon existing and future rates and the
legal, technical and financial qualifications of the Buyer to own
and operate the cable television system serving the City (the
"System").
(b) The Buyer hes failed to demonstrate that it is a technically
qualified applicant for the following reasons:
(1) The burden of proof is upon the Buyer to demonstrate its
legal, technical, and financial qualifications to assume
control of the Franchise and the Franchisee.
(2) The Buyer possesses no track record in the operation of
cable television systems or the provision of cable television
services. The Applicants have failed to present any
affirmative evidence demonstrating the Buyer's technical
and experience qualifications to own and operate cable
systems. Although the Buyer may possess significant
experience and expertise in the development of computer
software and related products, as well as the operation of
professional sports teams, no evidence was presented by
the Applicants demonstrating the Buyer's technical and
experience qualifications to own and operate cable
television systems on a limited or large scale basis.
(3) No evidence has been presented by the Applicants as to the
Buyer's contractual commitment, long-tern, short-term, or
otherwise, to maintain existing Charter management and/or
operating policies and procedures.
(4) Given the risks associated with the Transfer, as identified
above, it will not be in the public interest for the City to
unconditionally approve the Transfer at this time. The
disapproval of the Transfer contained herein is without
prejudice and may be reconsidered by the City Council
when and if the Applicants are able to present evidence
demonstrating the Buyer's technical suitability.
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SENT 13Y: WALLIN KRESS REISMAN ;12- 9-98 : 4 :33PM ; ;3101 450-0506- 818 307 9218;5 6/ 6
3. A transfer of the Franchise, transfer of actual or managerial control of the
Franchise, and/or transfer of control of the Franchisee, shall be deemed a
material breach of the Franchise.
SECTION 2. This resolution shall take effect immediately.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED by the Rosemead City Council on this day of
December, 1998.
Robert Bruesch
Mayor
City of Rosemead
ATTEST:
Nancy Valderrama
City Clerk
City of Rosemead
7A G
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